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Course Name (English)
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INTRODUCTION TO TECHNICAL ANALYSIS
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| Course Code |
FIN555 |
| Course Description |
This course will introduce to the students the concept and the application of technical analysis, the various technical indicators and investment decision using technical tools. It emphasizes on various techniques and strategies used in technical analysis software employing both basic and advance technical indicators in analysing investment decision of a single asset. Basic understanding of technical analysis includes the understanding of charts, patterns, trends as well as a formation of price movement. Next, this course covers on the construction of technical indicators. It would include several common technical indicators employed by most technical analyst and some advance patterns in Japanese Candlestick chart. To enhance the students’ understanding, a dedicated trading simulation lab equipped with trading software (BursaStation Professional) or Metastock or other relevant trading sofwares. |
| Transferable Skills |
This course requires the instructor to deliver the skills and knowledge in the form of lecturing, discussion and application of the various concepts, techniques and strategies in the classroom and the technical analysis simulation lab. |
| Teaching Methodologies |
Lectures, Lab Work, Tutorial, Simulation Activity, Presentation, Computer Aided Learning, Project-based Learning |
| CLO |
| CLO1 |
Illustrate the various types of investment decisions with the emphasis on techniques and strategies used in technical analysis. |
| CLO2 |
Assist an investment strategy using technical analysis on a single asset to maximizes return and minimizes risk to demonstrate students’ understanding on the knowledge. |
| CLO3 |
Build a hands-on skills and knowledge through technical anallysis software package(s) of Bursa Station and Metastock to carry out trading simulated activities for a real time technical analysis experience. |
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| Pre-Requisite Courses |
No course recommendations |
| Topics |
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1. Introduction to Technical Analysis
1.1) 1.1 The Definition and Interaction of Trends
1.2) 1.2 Dow Theory and Random Walk Theory
1.3) 1.3 Efficient Market Hypothesis
1.4) 1.4 Typical Parameters for Intermediate Trends.
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2. Support and Resistance
2.1) 2.1 How to identify Support and Resistance Zone
2.2) 2.2 Trendlines
2.3) 2.3 Basic Characteristics of Volume
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3. Price patterns
3.1) 3.1 Smaller patterns and Gaps
3.2) 3.2 One and two Bar price Patterns
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4. Technical Indicators
4.1) 4.1 Moving Average
4.2) 4.2 Envelopes and Bollinger Bands
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5. The Momentum Indicator (Rate of Change)
5.1) 5.1 Selection of Time Span
5.2) 5.2 Principles and Application of Momentum Indicators
5.3) 5.3 Momentum Characteristics
5.4) 5.4 Momentum Trend Reversal Techniques
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6. The Momentum Indicator (Relative Strength Index)
6.1) 6.1 Constructing Overbought/Oversold Lines
6.2) 6.2 Time Span
6.3) 6.3 RSI Interpretation
6.4) 6.4 Price Oscillator
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7. The Momentum Indicator (Moving Average Convergence Divergence)
7.1) 7.1 Introduction
7.2) 7.2 Time Span
7.3) 7.3 Overbought/Oversold Lines
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8. The Momentum Indicator (Stochastic)
8.1) 8.1 Introduction
8.2) 8.2 General Interpretation
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9. Candlestick Charting
9.1) 9.1 Candle Construction
9.2) 9.2 Basic Candlestick Pattern Building Blocks
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10. Analysis and Report Writing
10.1) 10.1 Chart Capture and Arrangement Techniques
10.2) 10.2 Analysis and Recommendation Techniques
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| Assessment Breakdown | % |
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| Continuous Assessment | 100.00% |
| Details of Continuous Assessment |
| Assessment Type |
Assessment Description |
% of Total Mark |
CLO |
| Assignment |
Test 1 |
20% |
CLO1
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| Assignment |
Assignment 1 |
20% |
CLO2
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| Assignment |
Assignment 2 |
40% |
CLO3
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| Test |
Test 2 |
20% |
CLO1
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| Reading List | | Recommended Text | - Martin J. Pring 2014, Technical Analysis Explained, McGraw Hill, 5th Edition Ed., McGraw Hill
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| Article/Paper List | This Course does not have any article/paper resources |
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| Other References | - Book Perry J, Kaufman 2003, A Short Course in Technical Trading, John Wiley & Sons
- Book Charles & Julie 2016, , Technical Analysis: The Complete
Resource for Financial Market Techicians
, , Pearson Education
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