Also known as technical charting, this module is all about the analysis of financial security charts and how statistics generated by price and volume movements in the market are used in forecasting future performance.
To put things in perspective, technical analysis is compared with fundamental analysis at the beginning of this module. It then covers the evolution of charting in the East and in the West.
The eastern evolution consists of Candlesticks, Equivolume, Renko, Kagi and Ichimoku charting while the western evolution covers Elliot Wave and Classical Charting also known as the Dow Theory.
The main focus of this module is Classical Charting, which discusses extensively the basic principles, price fields, chart composition & scaling, arithmetic charts, logarithmic charts, types of charts.
The advanced stages of the module include trend analysis, retracements, pattern or formation analysis, volume, gap analysis, pitchforks, Fibonacci fanlines and arcs
It also includes practical exercises on current global charts using specific leading and lagging indicators or oscillators such as Bollinger Bands, Various Moving Averages, Moving Average Convergence Divergence (MACD), Parabolic Oscillator, Stochastic and Relative Strength Index (RSI).