Académique Documents
Professionnel Documents
Culture Documents
Test Details
Duration: 60 minutes No. of questions: 50 Maximum marks: 50, Passing marks: 25 (50%) There is no negative marking in this module.
Fee Structure
Rs. 3,560/- (Rupees Three Thousand Five Hundred Sixty Only) + Service Tax as applicable
www.vskills.in
Table of Contents
1. Market Basics
1.1 Stock Market Terminology 1.2 Price Movements 1.3 Share Price Chart
2. Trendlines
2.1 Meaning of Trend Lines
3. Dow Theory
3.1 First Tenet 3.2 Second Tenet 3.3 Third Tenet 3.4 Fourth Tenet 3.5 Fifth Tenet 3.6 Sixth Tenet
4. Volume
4.1 Importance of Volume 4.2 Volume and Chart Patterns 4.3 Price Trends and Volume
5. Price Charts
5.1 Types of Charts 5.2 Other Price Charts 5.3 Support 5.4 Resistance
www.vskills.in
9. Fibonacci Study
9.1 Overview 9.2 Arcs 9.3 Fans 9.4 Retracements 9.5 Time Zones
www.vskills.in
Course Outline
1. Market Basics
Discusses the important terminologies used in the stock market such as meaning of bull, bear, closing price, circuit breaker, intraday trading, stop-loss etc. Illustrates the various reasons that might cause movement in price such as falling share price, changing market conditions, etc. Explains the functioning of share price chart and illustrates various situations such as gaps, dead cat bounce etc.
2. Trendlines Trendlines
Explains the basics of trendlines such as the procedure of drawing a trendline, meaning of intersecting trendlines, drawing trendlines on long-term charts etc Describes the different types of trendlines with examples Upward and Downward trendlines
3. Dow Theory
Describes the various types of trends in the first tenet of Dow Theory such as uptrends, down-trends and corrections. Illustrates the three phases in the second tenet of Dow Theory such as accumulation phase, public participation phase and excess phase. Describes the functioning of the price of an asset in the third tenet of Dow Theory and how the markets discounts all news Explains the concepts of stock market averages used in the fourth tenet of Dow Theory Explains the role of volume in identification of price trend in the fifth tenet of Dow Theory The sixth and the final tenet of Dow Theory states that the trends exist until definitive signals prove that they have ended.
4. Volume
Explains the meaning and importance of volume in technical analysis in terms of trend confirmation and chart patterns Explains the relation of volume and chart patterns and the implication when volume precedes price and the concept of breakouts Explains the relation between price trends and volume, analysis of trend volume and the meaning of volume spikes
5. Price Charts
Explains the purpose of price charts and the usage of time frames by traders as per their trading style Describes the various types of charts such as line chart, bar chart and candlestick charts. www.vskills.in
8. Technical Indicators
Explains the importance and usage of technical indicators Describes the categories of technical indicators leading and Lagging indicators Illustrates the Simple Moving Average (SMA) Model with example and charts Illustrate the Exponential Moving Average (EMA) Model, its numerical and graphical representation Comparative analysis between SMA and EMA Explains the concept of Moving Average Convergence Divergence (MACD), its graphical representation and various types of MACD lines Explain the leading technical indicator Oscillators, relative strength index and stochastic oscillators Explains the practice of Bollinger bands and ways in which it is used Explains the Average Directional Index (ADX) Explains the concept of Parabolic SAR
9. Fibonacci Study
Discusses the evolution of Fabonacci and the associated studies Explains the meaning and interpretation of Fabonacci Arcs Explains the meaning and interpretation of Fabonacci Fan Lines Explains the concept of Fabonacci Retracements Explains the interpretation of Fibonacci Time Zones www.vskills.in
www.vskills.in
Sample Questions
1. One of the most popular tools used by technical analysts is ___________. A. P/E ratio B. book-to-market-value ratio C. moving averages D. growth rate of dividends
2. A bar chart is used to illustrate ___________. A. high, low and closing stock prices on a daily basis B. reversal in the direction of stock prices without consideration of time C. high, low, opening and closing prices on a daily basis D. advances and declines of stock prices
3. According to the Dow Theory, daily fluctuations and secondary movements in the stock market are used to identify the ___________. A. intermediate trend B. seasonal pattern C. short-term trend D. primary trend
4. Which of the following indicates a sell signal to technical analysts? A. The advance-decline line is rising in a falling market. B. The amount of short selling done by specialists is high. C. The resistance level is broken. D. The majority of stock market newsletters are bearish.
5. Which of the following indicates a buy signal to technical analysts? A. Both the Dow Jones Industrial Average and the Dow Jones Transportation Average are moving down. B. Odd-lot buying exceeds odd-lot selling. C. The advance-decline line is falling in a rising market. D. The stock breaks through the moving average line from below.
6. Which of the following highlights traders' opinions about the market? A. Sentiment indicators B. Leading indicators C. Moving averages D. Breadth indicators www.vskills.in
8. When technical analysts say a stock has good relative strength, they mean the ___________. A. ratio of the price of the stock to a market index has trended upwards B. recent trading volume in the stock has exceeded the normal trading volume C. total return on the stock has exceeded the total return on other stocks in the same industry D. stock has performed well compared to other stocks in the same industry
9. A basic assumption of technical analysis in contrast to fundamental analysis is that ___________. A. financial statements provide information crucial in valuing a stock B. a technical analyst would evaluate the amount of short selling, the volume of trading, and the P/E ratio of a stock C. the stock market is inefficient D. security prices move in patterns, which repeat over long periods 10. A resistance level is the price range at which technical analysts would expect the ___________. A. demand of a stock to decrease substantially B. demand of a stock to increase substantially C. supply of a stock to increase substantially D. supply of a stock to decrease substantially
Answers: 1 C, 2 A, 3 D, 4 B, 5 D, 6 B, 7 C, 8 A, 9 B, 10 A
www.vskills.in