Technical Analysis
Competency Title:
Technical Analysis
Competency Type:
Functional
Competency Description
This competency refers to the ability to forecast the future direction of securities and derivatives prices through the use of technical indicators. The scope includes analysing and evaluating historical prices of securities, derivatives and related markets.
Level 1 - Awareness
Level 1
• Identify factors that impact the price movement of securities and derivatives.
• Identify the sources of information to extract the required data.
• Identify various charting methods and technical indicators.
Level 2 - Knowledge
Level 2
• Clarify the relationship between factors contributing to the price movement and volume.
• Recognise patterns in price movement and volume.
• Match appropriate charts to the type of information required.
Level 3 - Skill
Level 3
• Determine appropriate charts and technical indicators to interpret price movement and volume.
• Analyse different technical indicators and patterns in price movements and volume.
• Interpret results of the analyses and forecast the price movement and volume.
Level 4 - Mastery
Level 4
• Construct charts to analyse patterns and forecast prices.
• Determine appropriate technical indicators and charting methods to capture patterns in price movement and volume.
• Validate analyses findings against trading strategy.
Level 5 - Expert
Level 5
• Evaluate effectiveness of the charts used to track the patterns in forecasting prices.
• Evaluate effectiveness of charting methods and technical indicators used in the analysis.
• Establish the criteria to be used to test the validity of conclusion drawn from technical analyses.