FIN231 Technical Analysis

This subject introduces the key concepts in technical analysis and explores techniques for the construction, interpretation and application of charts to a variety of markets. This includes firstly a discussion of theories relevant to technical analysis, then moves into long and short term bar-chart analysis, non-price data analysis, chart patterns, and finishing with an exploration of types and uses of indicators. Practical examples of each concept and approach are given, which students then later apply via conducting an analysis of a series of real-world company share charts, and then provision of a recommendation based on this analysis.

This subject contributes to the investment analysis major.

For more information, please refer to the subject outline here.

  • Learning outcomes
    • On successful completion of this subject, individuals should be able to:

      1. Examine the discipline of technical analysis.
      2. Explain the key principles of Dow Theory.
      3. Apply the important tools and concepts of technical analysis within price trends and turning points.
      4. Examine non-price data indicators of investor participation and attitude to trend strength and price movements.
      5. Apply chart patterns, trading volumes and price objectives within price trends.
      6. Apply the common indicators used in technical analysis to add value to basic chart analysis.
      7. Formulate trading strategies.
  • Subject content
    • Topic Title
      Topic 1 Introduction to technical analysis and trading strategies, and Dow Theory
      Topic 2 Short-term bar chart analysis
      Topic 3 Long-term bar chart analysis
      Topic 4 Non-price data analysis
      Topic 5 Chart patterns
      Topic 6 Introduction to indicators
      Topic 7 Trend following indicators
      Topic 8 Momentum indicators
      Topic 9 Other trend and momentum indicators
      Topic 10 Formulating trading strategies

  • Duration
    • The duration of this subject is one study period (12 weeks).

  • Assessment
  • Prerequisites
    • There are no prerequisites for this subject. However please review the Assumed Knowledge tab to understand the prior knowledge Kaplan advises you should hold before enrolling in this subject.

  • Assumed knowledge
    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FIN201 Quantitative Applications in Finance or understand the content covered in this subject, prior to undertaking FIN231 Technical Analysis.

  • Course transition subject equivalence
    • Individuals may not be required to complete this subject if they have transitioned from a SIA/Finsia/Kaplan course and have completed the following subjects:

      • E114 Technical Analysis
  • Reading list
    • There is no prescribed text for this subject.

      Individuals are provided with key readings and access to Kaplan’s online databases. Individuals are encouraged to research and read widely on the topic.