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FIN331 Specialised Techniques in Technical Analysis

This subject introduces students to some of the most important and widely used specialised techniques in technical analysis. It develops skills in the construction, interpretation and application of specialised charting techniques, with application to a variety of markets. It also introduces important theories that underlie some of these techniques. Practical examples are used to demonstrate the application of the techniques.

These techniques generally stand on their own, so students must refrain from mixing these concepts with the general concepts learned in Technical Analysis (FIN231), beyond what the particular technique directs you to apply. Reference to FIN231 concepts will not be rewarded.

In this subject, students will also be asked to consider their analysis from the point of the ‘adviser’ rather than that of the ‘trader’. The adviser role differs to the trader role only in that after all the trader issues have been considered, the adviser must prepare a report that justifies his analysis and strategies and convinces the client to accept the recommended course of action.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      1. Understand key concepts in Japanese Candlestick, Ichimoku, Heikin-Ashi, Three-Line Break, Renko and Kagi charts and how they complement bar charts and indicator analysis.
      2. Construct and interpret Japanese Candlestick, Ichimoku Heikin-Ashi, Three-Line Break, Renko and Kagi charts.
      3. Identify trends and turning points using Japanese Candlestick, Ichimoku Heikin-Ashi, Three-Line Break, Renko and Kagi charts.
      4. Formulate and justify trading strategies based on Japanese Candlestick, Ichimoku Heikin-Ashi, Three-Line Break, Renko and Kagi charts.
      5. Understand the role of technical analysis in the wider trading context.
  • Subject content
    • Topic Title
      Topic 1 Candlestick Charting
      Topic 2 Advanced Japanese Techniques
      Topic 3 Constructing Point and Figure Charts
      Topic 4 One-Box-Reversal Point and Figure Charting
      Topic 5 Three-Box-Reversal Point and Figure Methods
      Topic 6 Fibonacci Sequence and Cycles
      Topic 7 Gann Forecasting Techniques
      Topic 8 Gann Swing Charting
      Topic 9 Elliott Wave Theory
      Topic 10 Steidlmayer Distribution Analysis
      Topic 11 Intermarket Technical Analysis
  • Assessment
  • Recommended knowledge
    • We recommend that you complete the following Kaplan Education subject(s) (or have a thorough working knowledge of the content) prior to enrolling in this subject:

      • Technical Analysis (FIN231).

      Students who believe that they have a thorough working knowledge of the content of FIN231 may enrol in FIN331, but do so on the understanding that:

      • Some parts of some topics in FIN331 will refer to concepts taught in FIN231, such as the concept of a trend, trend lines and support and resistance.
      • No assistance will be given through the Discussion Forum, or in any other way, with material from FIN231.
      • The subject notes for FIN231 may not be purchased except by enrolment in that subject.
  • Reading list
    • Because books on this subject are expensive and can be difficult to obtain locally, multiple references have been provided wherever possible. They should be seen as alternatives. It is not intended to indicate a necessity to read them all. On occasion there may be conflicts between the material in the subject notes and some of the material in the further readings. For the purposes of assessment in this subject, the material in the subject notes is required.

      Technical analysis is a living and developing discipline and there are many areas that are subject to debate. The approach taken in the subject notes is believed to be that generally accepted by the main body of practitioners in the field.

      Because of the specialised nature of the topics in this subject, no single book covers all of them. The only book which comes close and represents a useful introduction to some of the topics is:

      • Murphy J.J. 2003, Technical Analysis of the Financial Markets, Prentice-Hall.

      ISBN 0735200661.
      It can usually be purchased locally from the Educated Investor bookshop in Melbourne (other cities serviced by mail order see www.investment-books.net or Dymocks outlets, both of whom will obtain it for you if they are out of stock.