CeTA Syllabus

CERTIFIED TECHNICAL ANALYST (CeTA)

Syllabus for Level-1 w.e.f. 1 July, 2016


 

Module-1

Introduction to Financial Market

1. The importance of Markets in the 21st Century

1. Finance as the engine of civilization – A brief History of Financial markets
2. Introduction to Technical Analysis
3. From Homma to Dow – A brief History of Technical Analysis
4. Major Market Theory- Dow, Elliot Wave, Wyckoff
5. Influence of Psychology on Markets
Prospect Theory
Behavioral Finance
Mark Dauglas – The Disciplined Traders

2. Macro Finance

1. The larger view of Market
Government Policies
Central bank
Inflation
Government date and reports
2. Measures
Index Number
Breadth Indicators
Advance and decline
New High-New Low
Put Call ratio and VIX
Volatility (Historical & Implied)
3. Behavioral Finance
4. Adaptive Market Hypothesis

Module – 2

Essential Technical Tools

3. Foundation of Technical Analysis

1. Price & Volume
2. Importance of Data – Historical, Real time, methods of collection & storage
3. Trading instruments- Equity and Derivatives
4. Asset Classes - Stocks, Currencies, Commodities, and SOFTS
5. Trading opportunities around the world.

4. Charts Patterns
1. Scaling methods (Arithmetic, Logarithmic, Semi-Logarithmic)
2. Lines Chart
3. Bar Chart
4. Candlestick chart
5. Point and figure chart
6. Kagi Chart
7. Volume
8. Candlestick pattern
9. Elliot Wave
10. Sentiment
11. Market Breadth
12. Market forecasting
13. Price Patterns
14. Volume Analysis
15. Candlestick Analysis

5. Trend and Pattern Analysis

1. Chart construction- Volume
2. Multiple time frame analysis
3. Channel breakout
4. Moving Averages
5. Trend Indicators (DMI, ADX)
6. Gap analysis
7. Oscillators and divergence
8. Sector rotation
9. Intermarket signals

6. Trend Following
1. Trend lines
2. Moving averages
3. Support and Resistance
4. Channel Breakouts
5. Retracement
6. Fibonacci numbers

Module – 3

Trading Tactics

7. Algorithmic Trading and System Testing

1. Algorithmic development
2. Optimizing entry and exit rules
3. Equity curve analysis
4. Position size rules
1. Tharp’s methods, Kelly criterion, Optimal f
5. Proper/Back testing
6. Evolution & Optimization
7. Order Execution & Slippage
8. Profit factor
9. Outlier-adjusted profit to loss
10. Percentage of winning trades
11. Annualized rate of return

8. Mean Reversion Strategy and Indicator

1. RSI (Relative strength index)
2. MACD (Moving average convergence/divergence)
3. Bollinger bands
4. Stochastic
5. Relative Strength
6. Breadth Indicators – A/D, up/Down volume
7. Volume – Price trend
8. Open Interest

9. Techniques & Tactics of Investment
1. Pattern and Trend identification
2. Cycles of Business
3. Standards
4. Opportunity – Analysts, Trader, Investment Adviser
5. Technical Analysis as a profession
6. Ethics

 

Module 4

Managing Client Accounts

10. Risk Management

1. Risk Management
2. Psychological Management
3. Trader’s Life Cycle
4. Finding the Sensible Risk Posture
5. Overtrading
6. Controlling Risk per Trade
7. Risk of a Single Stock
8. Risk of a Portfolio
9. Method of Controlling the Risk

11. Portfolio Management

1. Performance measurement
2. Portfolio allocation
3. Asset allocation
4. Alternative investment

12. Stock Market Discipline and Rules

1. How to Become a Disciplined Trader
2. The Psychology of Price Movement
3. The Steps to Success
4. A Final Note

13. Case Studies