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Why should you take a technical analysis course? What is technical analysis? What difference can a technical analysis course bring while trading? All these must be the questions hovering over you when you come across technical analysis courses.
Let's have a detailed look at all these prospects and then come to a conclusion of how technical analysis courses can help you better with your trading strategies and become a successful trader.
Learn technical analysis step by step
Technical analysis course overview
The technical analysis courses are designed to build one's skill from knowing nothing about trading to building a new career in the field as a profitable trader.
You can also find such certified technical analysis courses with us.
In Indiacharts, we offer a complete technical analysis trading course on Elliot Wave Theory.
Objectives of Indiacharts Mentorship Program
The objective of Indiacharts Mentorship Program is to train the investors and traders to build a strong investment portfolio through Elliot Wave Analysis. The courses are a rigorous stock market training program conducted by renowned Rohit Srivastava.
The courses are commenced as both live online classes and several video materials to learn from.
Benefits of learning technical analysis
Technical analysis helps you to act in response to the price changes that takes place in the market. It also helps you take advantage of the strong fluctuations by recognizing trends, price levels and figures. The most important benefit of learning technical analysis is that they can help you in making a decision on at what price it may be wise to open or close a position.
The content covered under the course is as detailed below.
Basics of Dow Theory
- Basics of trends and trend change
- Intermarket divergences
- Channels and trendlines
- Candlestick theory
- Price patterns
- Gap analysis
- Introduction to Elliott Waves
- Rules of Elliott Waves
- Impulse waves
- Leading and ending diagonals
- Equality/personality/ratio analysis
- Zigzags, double and triples
- Flat corrections
- Complex corrections
- Fibonacci series
Rohit's trade setup
- Rohit's momentum indicator
- Sentiment Indicators
- Rohit's trade setup
- Position sizing and Risk management
- Options trading using Elliott Waves
- Long term investments using Elliott waves and fundamentals
- Kondratieff cycle
- Scanning and filtering stocks
- Discussion on current markets
- Doubts clearing sessions
- Explaining all concepts
- Guidance on trade/ risk and position sizing model
The technical analysis courses can certainly help in understanding when and where to invest and withdraw the funds while trading. The technical analysis courses are carefully planned to guide the trader through the jungle of trading. Taking these courses is always recommended before making a serious investment. The Dow Theory and Elliott wave theory, is the body of all technical analysis courses are very important to understand the nuances of trading.
Why learn from IndiaCharts?
The courses offered by Indiacharts are the elixir to successful trading. The courses apart, in Indiacharts, you also get the following privileges
- 50 plus lecture videos
- lifetime access to live sessions
- Indiacharts certification exam
- Self-assessment tests
- Lifelong mentorship by Rohit
- Discussion forum to discuss your Trade and Investment setups
- Case studies
All these are also part of the course offered by Indiacharts.
What is the duration of the course?
The course is a combination of pre-recorded videos and live online classes. The prerecorded videos can be accessed for a year, while there is no bar on the online classes. You can attend these classes whenever you want with every new batch.
How do I become a certified technical analyst?
To become a certified technical analyst, upon successful completion of the technical analysis course, there are two levels of tests are to be given. If scored more than 50% in both the levels, you'll be Indiacharts Elliott Wave Certified analyst and if scored more than 90% in both tests, you'll be Indiacharts Elliott Wave Certified Master analyst.
Do I require basic knowledge about the market before taking up this course?
While that does give you a perk, this course is actually for anyone who is interested in the functioning of the trading industry.
Read more: Stock Market Trading for Beginners
How is taking a course different from Google reads?
Google, as we all know is bombarded with information on anything under and above the sun. But the information, again, as we all know is scattered throughout the internet. It can almost be impossible to structure and compile it without professional support. As convenient as Google is for quick know-how, it is never recommended to invest your money in a stock solely based on your knowledge from 'Googling'. This is where the technical analysis courses come into help. One such course are provided by the Indiacharts, which offers several trading introduction courses, including Fundamentals of Technical Analysis.
Still not sure. Here are some basics to guide you.
What is technical analysis?
Introduction to technical analysis
Let's start with what technical analysis is. The art of making predictions about the future performances of the stock market, based on past market data is called technical analysis. These technical indicators are put to use by the technical analysts to measure the degree of price variations in the market over a period of time and predict the future price, future performance of a particular stock, market trends and the risk involved.
The chart patterns can give the fund managers and portfolio managers the information they need to estimate the future price movements in the financial markets to make trading decisions for themselves and their prospects. The more the technical analysts are unerring about the technical charts and chart patterns, the more accurate is can they predict future movements of the stock price in the markets. Although technical analysis is a powerful tool, not everyone seemed to think that. The prediction of future prices based on past data was just as good as guessing. But now, the world has moved to the era where computers with large processing power help us get closer to the right values.
Now this brings us to our next question:
What is the best way to learn technical analysis?
Chart patterns and indicators are not the only things included in a regular technical analysis. The technical analysis focuses also on it the study of behavioral economics, risk management and more. The objective of the technical analysis is to identify the trading opportunities and device trading strategies that help in maximizing not short-term delivery but long-term risk-adjusted returns.
How to put technical analysis to practice?
Let's look at the best ways to learn technical analysis step by step.
- Build a foundation
The first step to learning technical analysis is to build a foundation. How do we do that? Well, to build a foundation of technical analysis, it is important to get a grasp of the core concepts of trading. There are many books available in markets that cover these topics. In addition to that, there are also several online and offline technical analysis courses available to hone the trading skills. While there are several top technical analysis courses available, it is important to choose the technical analysis course that teaches the basic principles of technical analysis.
While the fundamental analysis can determine the real stock value or the fair market value, the technical analysis forecasts the direction of prices. Fundamental analysis is used by the analysts to find stocks that are running higher or lower than their fair market value. Unlike fundamental analysis, technical analysis uses the past market data such as price and volume to form stock charts that help in devising a trading strategy with a profit target. Many successful traders practice technical analysis in its own pace for trading their stocks.
- practice and develop trading skills
It is no big news that practice can bring perfection. But, in the trading world, although perfection may seem a bit far-fetched, practice will help you in fine-tuning your trading skills. There are certain applications that helps you in running a few practice tests before you put money in the stocks. Traders using an automated trading system can back-test and analyze the performance of a set of rules using historical data. Thus, a good amount of practice on trading for even a short term and a good understanding of statistical trends can help in developing the trading skills and maximize the returns from the stock trade.
How does technical analysis help in trading?
Now it's time to answer the next big question: How does technical analysis help the traders with their trading?
Firstly, we all know that technical analysis is a trading discipline used to measure investments and identify trade opportunities based on price trends chart patterns. Technical analysis is used to generate short-term trade signals, where charts and different charting tools and can also help evaluate a security's strength or weakness, in comparison to the broader market or one of its own sectors. This information helps the analysts in improving their overall estimation of a security's value. Moreover, technical analysis is far more frequently practiced in commodities and forex markets, where traders focus on short-term price movement. The forex market is an over-the-counter market for trading currencies. The forex market works through financial institutions and works on different levels.
Technical analysis was first introduced by Charles Dow, like Dow Theory. Later, several other noteworthy types of research contributed to Dow's theory to form in basis, of what it is today. Technical analysis looks at a few broad types of indicators as mentioned below:
- price trends
- volume and momentum indicators
- support and resistance level
- moving average
- chart patterns
The most widely accepted assumptions in technical analysis that are in demand while a trade decision is being made are that the market discounts everything; price moves in trends and history repeats itself.
Technical analysis can thus help in trade with its prediction of the future market based on the historical data. Technical analysis tells the trader what will happen given the past data on a trade that is being made.
What are the tools used in technical analysis?
Next, we can have a look at different technical analysis tools that are most effective for making technical analysis.
- On-balance volume - This type of indicator is used to measure the positive and negative flow of volume of security in a period of time. According to Joseph Granville, who developed the OBV indicator, with respect to the sharp increase and decrease of volume without a significant change in the stock price, then the value will eventually pike and dip accordingly.
- Accumulation or distribution line - this is the most commonly used indicator to determine the flow of money in and out of the security. This indicator is used to measure supply and demand in the market depending on whether people are buying or selling the stocks.
- The Average Directional Index - this is a trend indicator that is used to measure the momentum and strength of a trend. These indicators suggest that trading in the direction of the trend reduces the risks and increases the potential to make a profit.
- Aroon Indicator - This indicator is used to analyze whether trade security is in trend and if or not the prices are hitting a new high or a new low. This indicator is also used to identify whether the trends are going to change direction.
- Relative strength index - The RSI indicator indicates the recent price ups and price downs of the stocks, thus evaluating the trend strength and momentum. Originally developed by J. Welles Wilder, the RSI indicator determines whether the stock is overvalued or undervalued.
- Bollinger Bands - Bollinger bands help the trader in analyzing whether the prices are high or low on a relative basis. Bollinger Bands is a technical indicator developed by John Bollinger to measure a market's volatility.
- MACD - MACD or moving average convergence divergence indicator helps the trader to see the momentum as well as the trend direction of a particular trend. If the MACD value is above zero, then the price is in an upward phase and if it is below zero, then it implies that the price is in the downward phase.
Is technical analysis enough for trading?
So, is technical analysis alone is enough to be successful as a trader? The answer is slightly complicated than a simple yes or no. While technical analysis is important to understand the trends and price action, that alone cannot be deemed quite as enough. Expert instruction states that along with technical analysis, fundamental analysis is also quite as important to make the trading a much successful experience.
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The best way to learn technical analysis is to sign up for a technical analysis course.
Yes, all professional traders employ technical analysis along with fundamental analysis to make the best returns out of their investments.
Practice, along with proper training on a technical analysis course is the best way to master technical analysis.
There is no bar of educational criteria to pursue technical analysis course.
The profit depends on the skill set acquired after taking the course and the investments made.