MCTA™ (Master Certification in Technical Analysis) course aims create professionals or smart trader who can predict the price movement of commodity/stock and can analyze the risk reward of his capital even in extreme volatile market. You will learn the art of analyzing the charts and how to define stoploss and target, Risk Reward ratio, Intraday trading techniques, BTST/STBT and positional trading. After this course you will understand the in-depth physiology of a normal investor/Trader and how the market will react on sentimental.
An intensive training program designed for market traders who wish to define their skills in trading and start learn technical of stock/commodity market. This course will help you in boost your career in finance, Investment Banking and Business Analysis and help you become Certified Master of Technical Analysis in short term.
The course is highly interactive as after the end of each module there would be quizzes and assignments which you have to submit in stipulated time and any doubt shall resolve by expert/analyst within 24 hours by email/phone.
What is technical Analysis ?
Technical Analysis is study of lines, graphs, waves formed by the price time chart of a stock. In other words it is the technique to predict the future price of a stock based on its past price performances OR Technical analysis is the framework in which traders study price movement.
Technical Analysis is based on three assumptions:
1.The market discounts everything.
2.Price moves in trends.
3.History tends to repeat itself.
THE PRINCIPLE OF TECHNICAL ANALYSIS
There are many different types of technical traders and investors. Some rely on chart patterns, others use technical indicators and oscillators, and then there are some that use various combinations. Technical analysis uses price and volume data shown in charts to determine the possible future price of a security. Some technical analysts do not consider whether a stock is undervalued or overvalued, they only look at the security's past trading data and what this information can provide with respect to where the price might move in the future. Any attempt to trace the history of technical analysis would inevitably lead to Charles Dow, his belief in the three basic assumptions became commonly known as the Dow Theory.
INTRODUCTION TO TREND
The trend is very important for technical analysis. Trend mean in brief, direction of the market.
§UPTREND (Market is going up)
›higher highs and higher lows
§DOWNTREND (Market is going down)
›lower highs and lower lows
§SIDEWAYAS (Market not up or down)
›equal high and equal low
First thing that market always trade in trend weather it is uptrend, downtrend and sideways trend.
§80% stocks follow market trend.
§If you trade in direction of trend you can get maximum profit
§Help us to know fake-out and taking right decision that is reason there is one saying “TREND IS FRIEND”
Trendline is a trend identification tools enables us to identify the current price direction. As we learn importance of trend that why trendline is most important for us for advance trending strategy also. Because in every trading strategy we must have to check the previous trend to make trading decision. Trendline also help us to find supply and demand areas in chart
Trendline are basically are two types and very easy to draw .
1.Upward Trendline (create when price is going upside)
2.Downward Trendline (create when price is going down)
IMPORTANT RULE OF TRENDLINE
1.It takes at least two tops or bottoms to draw a valid trend line but it takes THREE to confirm a trend line.
2.Like horizontal support and resistance levels, trend lines become stronger the more times they are tested.
3.And most importantly, DO NOT EVER draw trend lines by forcing them to fit the market. If they do not fit right, then that trend line isn't a valid one!