University of Technology, Sydney

Staff directory | Campus maps | Newsroom | What's on

25809 Technical Analysis

UTS: Business: Finance and Economics
Credit points: 3 cp

Subject level: Postgraduate

Result Type: Grade and marks

Requisite(s): 25721 Investment Management
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject familiarises students with all aspects of technical analysis – a major force in financial markets. Topics include types of charts, reversal and continuation patterns, congestion/consolidation, Elliot and Krondratieff wave theory, and cross confirmation.

Subject objectives/outcomes

On successful completion of this subject, students should be able to:

  1. understand the theory and profitable applications of technical analysis to financial and commodity markets.
  2. analyse the actual market data using various technical analysis methods.
  3. understand technical analysis techniques and concepts used in evaluation.

Contribution to graduate profile

This course provides students with knowledge of the central tenants and methodology of technical analysis, which along with fund analysis is one of the two major paradigms of prediction of future asset prices. As such the course plays an important part in the education of students interested in funds management.

Teaching and learning strategies

The subject will be presented using a combination of lectures and workshops. These classes will be supplemented with both printed and electronic learning materials and resources.

Content

  • History of technical analysis
  • Type of analysis
  • Types of charts — line charts, bar charts, point and figure charts; how to construct them, select data and optimal sensitivity
  • Jargon and derived jargon — support, resistance, trend line, fan line, filter rule, moving averages, RSI, Coppock indicator etc.
  • Reversal patterns and continuation patterns
  • Congestion/consolidation
  • Elliott wave theory and Krondratieff Wave Theory
  • Cross confirmation
  • Applying TA to spot and options trading.

Assessment

Assessment item 1: Assignment (Individual)

Objective(s): 1-3
Weighting: 50%
Task: Tests the analysis of actual market data using the techniques developed in the course. This assignment will allow students to demonstrate that they have met the objectives 1-3.

Assessment item 2: Final Exam (Individual)

Objective(s): 1-3
Weighting: 50%
Task: Tests the understanding of the techniques and concepts developed in the course. It will enable students to demonstrate that they have met the objectives 1-3.

Required text(s)

Murphy JJ, Technical Analysis of the Financial Markets, New York Institute of Finance, Prentice-Hall Company, New York , 1999 edn

Recommended text(s)

Edwards RD and Magee J, Technical Analysis of Stock Trends, John Magee Inc., Boston, Massachusetts, 5th edition, 16th printing, 1987 or later editions

Balsara, Nauzer, Money Management Strategies for Futures Traders, John Wiley & Sons, 1992

Elder, Alexander, Trading for a Living: Psychology, Trading Tactics and Money Management, Financial Seminar Inc. John Wiley & Sons, 1993

Murphy JJ, Study Guide for Technical Analysis of the Financial Markets, Prentice-Hall company, New York, 1999 edition.

Indicative references

The Lecture Overheads will be provided on the first day of lectures. Note that the subject slides are not a substitute for the recommended textbook.

Other references: Faculty of Business (2006), Guide to Writing Assignments (available through UTSOnline or at www.business.uts.edu.au/resources/guide.html)