Stock Market and Forex Trading

Section One: Charts, Trends, and Patterns

The Basic Principle of Technical Analysis – The Trend

• Define what is meant by a  trend  in  technical  analysis Explain why determining the trend is important to analysts Identify primary,  secondary, short-term, and intraday trends 
• Describe the basic beliefs behind the art of technical analysis 
• The stock market, the equity market is the aggregation of buyers  and sellers of stocks, which represent ownership claims on businesses 

Introduction to Charts:

• Explain how a technical analyst uses charts to summarize price action Discuss the advantages of reviewing price information in chart format Identify the four basic price points represented in charting  
• Describe how to construct line, bar, and candlestick charts
• Identify the components of individual candles – real body and shadows Review the information available in line, bar, and candlestick charts Describe what is meant by “data interval” 
• Define “range” as it applies to prices on a bar or candlestick 
• Describe typical methods for displaying volume in a price chart stock market training will gives you more information charts

Trends – The Basics 

• Explain why trend identification is important to achieve profits 
• Recognize an uptrend, a downtrend, and a trading range 
• Describe the concept of support and resistance, and the underlying psychology 
• Recall how significant reversal points are identified List general rules for trend lines 
• Analyze how a trader or investor would go about selecting the right moving average, trend method. 
• Compare the role of each moving average in a two-trend or three trend method of trading 
• Contrast two general rules for generating an exit signal when using moving averages, and explain which one of the two is considered better than the other 
• Describe the “Golden Cross” and the “Death Cross”

Breakouts, Stops, and Retracements
        Describe and identify breakouts List methods for confirming and filtering breakouts Explain the purpose of entry and exit stops Describe methods for setting entry and exit stops Define retracements, pullbacks, and throwbacks

Moving Averages:

• Describe the basic principle of moving averages 
• Explain how to calculate simple, linearly weighted and exponentially smoothed moving averages Identify trends and signals with moving averages Describe and interpret Directional Movement Indicators 
• List common envelope, channel, and band indicators and their characteristics

Short Term Patterns:

• Locate reversals in longer-term trends using short-term price patterns Describe the types of gaps that occur on price charts and  their significance 
• Recognize wide-range and narrow-range bars and their implications for volatility Identify one and two-bar reversal patterns 
• Identify common candlestick patterns and their significance within a trend 

Introduction to Volume Analysis 

• Define volume Define open interest 
• Define the terms related to volume as discussed in this chapter 
• Describe how volume provides information on liquidity and participation
• Describe how volume adds perspective to price action 
• State the implications of volume change for price trends 
• Identify trends in price and volume in a chart 
• Describe how volume is displayed in a Volume-at-Price chart Define VWAP 
• Describe Equivoque charts 
• Explain how open interest rises and falls 
• State the implications of open interest changes for price trends 
• Stock market training will gives you more practical session Volume Indicators 
• List the seven types of volume indicators 
• Describe the types of data used in the different types of volume indicators 

Candlestick Charting Essentials

• Describe strengths and limitations of candle charts Identify the components of individual candle lines – real bodies and shadows 
• Explain how candles depict the high, low, open, and close of a trading period Identify candle confirmations of support and resistance 
• Technical analysis including how groups of Japanese Candlesticks can be used to find changes in market direction. You also receive the first strategies you can apply to the market. 

Section Two: Advanced Concepts in Charting and Trend Analysis

Trend Systems

• Explain three reasons why trend systems work  
• Demonstrate appropriate asset selections based on trend and forecast
• Diagram how to buy and to sell signals are used with indicators and tools for measuring trend, such as:  
• Moving Averages, Bollinger Bands, Percentage Bands, Volatility Bands, and other indicators  
• The Kings Crown Reversal  
• Teaches how to trade the Kings Crown reversal or the head and shoulder pattern

Measuring Market Strength

• Define market breadth  
• Identify signals of change in market breadth using the advance decline line  
• Explain the use of volume in measuring stock-market strength  
• Identify measures of stock-market strength from new high and new low data  
• Fibonacci Numbers, Numerical Sequence and How the ABCD’s Form
• Introduces students to the Fibonacci sequence, how it appears in everyday life, and how it can be used as a tool to identify market trends.
• Gives students insight into the Fibonacci Retracements and Extensions in a Bullish /Bearish 
• How the market waves within the Fibonacci Sequence and how even the market can create waves within these waves.(Uptrend / Downtrends)

Section Three: Markets and Volatility

Equities

• Define equity securities and primary data types Describe the benefits of equities for investors  
• Identify the effect of corporate actions on price data
• Classify sectors, capitalization, and other ways to segment the market.
• Fundamental Analysis  
• P/E Multiples of stock  
• Quarterly Results – Dividends

Indexes

• Identify major global equity indexes  
• Name common non-equity indexes used by technical analysts 
• Explain weighting methods used in major indexes

Futures

• Explain the purpose of futures markets  
• Classify various futures markets as industrial, agricultural, financial, and so on List the major terms of a futures contract  
• Define open interest in futures  
• Describe challenges technicians face when using futures market data

Foreign Exchanges (Currencies) What is the Forex? 

• The base and quote currencies in a pair Classify currency pairs as “major” or “cross”  
• Discuss the impact on technical analysis of the “dealer market” system of currency trading Explain the data used in building currency charts
• Discusses the foundation, and fundamentals of the Forex Market.  
• In this lesson, you’ll gain an understanding of how the Foreign Currency Market is different  
• From the Stock Market and the different ways, you can enter and exit the market. 

What are crypto Bitcoin and the Block chain?

A crypto currency (or crypto currency or crypto for short) is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. It typically does not exist in physical form (like paper money) and is typically not issued by a central authority. Crypto currencies typically use decentralized control as opposed to centralized digital currency and central banking systems. When a crypto currency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. Typically a block chain, that serves as a public financial transaction database.    

Options:

Explain the purpose of options markets List the major terms of an option contract Define implied volatility

Options are conditional derivative contracts that allow buyers of the contracts (option holders) to buy or sell a security at a chosen price. Option buyers are charged an amount called a “premium” by the sellers for such a right. Should market prices be unfavorable for option holders, they will let the option expire worthless, and thus ensuring the losses are not higher than the premium. In contrast, option sellers (option writers) assume greater risk than the option buyers, which is why they demand this premium. Options are divided into “call” and “put” options. With a call option, the buyer of the contract purchases the right to buy the underlying asset in the future at a predetermined price, called exercise price or strike price. With a put option, the buyer acquires the right to sell the underlying asset in the future at the predetermined price. 

Stock Market-Understanding Implied Volatility 

• Explain the difference between historical and implied volatility Describe the concept of put-call parity  
• Discuss how implied volatility may be used to estimate price movement. 

About the VIX Index 

• Describe the VIX index  
• Explain the implications of a rising or falling VIX index 

Portfolio Management 

• Trade Management  
• Position