2020 Curriculum 2021 Curriculum

Level I. An Introduction to Technical New for 2021 Level I. An Introduction to Technical

Analysis Analysis
Section I: Theory and History of Technical Analysis Removed for 2021 Section I: Theory and History of Technical Analysis

1. The Basic Principle of Technical Analysis — 1. The Basic Principle of Technical Analysis —
The Trend The Trend
Define what is meant by a trend in technical analysis Define what is meant by a trend in technical analysis
Explain why determining the trend is important to analysts Explain why determining the trend is important to analysts
Identify primary, secondary, short-term, and intraday trends Identify primary, secondary, short-term, and intraday trends
Describe the basic beliefs behind the art of technical analysis Describe the basic beliefs behind the art of technical analysis
Define “fractal” as used in describing price action Define “fractal” as used in describing price action

2. Dow Theory 2. Dow Theory

Describe the history of the development of Dow Theory Describe the history of the development of Dow Theory
Discuss the basic principles of Dow Theory Discuss the basic principles of Dow Theory
Identify the three basic types of trends identified in Dow Identify the three basic types of trends identified in Dow
Theory as defined by time: primary, secondary and minor Theory as defined by time: primary, secondary and minor
Identify the three basic trend patterns of all prices: upward, Identify the three basic trend patterns of all prices: upward,
downward and sideways downward and sideways
Describe the “ideal market picture” according to Dow Theory Describe the “ideal market picture” according to Dow Theory
Express the concept of confirmation in Dow Theory Express the concept of confirmation in Dow Theory
Explain the role of volume in Dow Theory Explain the role of volume in Dow Theory
 2020 Curriculum 2021 Curriculum

Section I: Theory and History of Technical Analysis Section I: Theory and History of Technical Analysis

3. History and Construction of Charts 3. History and Construction of Charts

List advantages of reviewing price information in chart List advantages of reviewing price information in chart
format format
Review the data points required to construct line, bar, and Review the data points required to construct line, bar, and
candlestick charts candlestick charts
Describe how to construct line, bar, and candlestick charts Describe how to construct line, bar, and candlestick charts
Explain the differences between arithmetic and logarithmic Explain the differences between arithmetic and logarithmic
scales and their uses scales and their uses

*NEW Lesson* 3. Introduction to Charts Part 1

Explain how a technical analyst uses charts to summarize price action
Discuss the advantages of reviewing price information in chart format
Identify the four basic price points represented in charting
Describe how to construct line, bar, and candlestick charts
Identify the components of individual candles - real body and shadows
Review the information available in line, bar, and candlestick charts
Describe what is meant by “data interval”
Define “range” as it applies to prices on a bar or candlestick
Define “fractal” and how it relates to chart construction

*NEW Lesson* 4. Introduction to Charts Part 2

Identify the variables plotted on the axes in a conventional price chart
Explain the differences between arithmetic and logarithmic scales and
their uses
Describe typical methods for displaying volume in a price chart
Discuss volume as an alternative to time on the x-axis of a chart
 2020 Curriculum 2021 Curriculum

Section II: Charts, Trends, and Patterns Section II: Charts, Trends, and Patterns

4. Trends — The Basics *Lesson # Change* 5. Trends — The Basics

Explain why trend identification is important to achieve profits Explain why trend identification is important to achieve profits
Recognize an uptrend, a downtrend, and a trading range Recognize an uptrend, a downtrend, and a trading range
Describe the concept of support and resistance and the Describe the concept of support and resistance and the
underlying psychology underlying psychology
Identify trends using most common methods Identify trends using most common methods
Recall how significant reversal points are identified Recall how significant reversal points are identified
List general rules for trendlines List general rules for trendlines

5. Breakouts, Stops, and Retracements *Lesson # Change* 6. Breakouts, Stops, and Retracements
Describe and identify breakouts Describe and identify breakouts
List methods for confirming and filtering breakouts List methods for confirming and filtering breakouts
Explain the purpose of entry and exit stops Explain the purpose of entry and exit stops
Describe methods for setting entry and exit stops Describe methods for setting entry and exit stops
Define retracements, pullbacks and throwbacks Define retracements, pullbacks and throwbacks

6. Moving Averages *Lesson # Change* 7. Moving Averages

Describe the basic principle of moving averages Describe the basic principle of moving averages
Explain how to calculate simple, linearly weighted and Explain how to calculate simple, linearly weighted and
exponentially smoothed moving averages exponentially smoothed moving averages
Identify trends and signals with moving averages Identify trends and signals with moving averages
Describe and interpret Directional Movement Indicators Describe and interpret Directional Movement Indicators
List common envelope, channel and band indicators and List common envelope, channel and band indicators and
their characteristics their characteristics
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Section II: Charts, Trends, and Patterns Section II: Charts, Trends, and Patterns

7. Bar Chart Patterns *Lesson # Change* 8. Bar Chart Patterns

Define what is meant by “chart patterns” Define what is meant by “chart patterns”
List common characteristics of patterns List common characteristics of patterns
Discuss opposing viewpoints over whether patterns exist Discuss opposing viewpoints over whether patterns exist
Describe the influence of computer technology on price- Describe the influence of computer technology on price-
pattern study pattern study
Identify classic chart patterns such as triangles and double Identify classic chart patterns such as triangles and double
and triple tops and bottoms and triple tops and bottoms
Identify rounding chart patterns such as head-and-shoulders Identify rounding chart patterns such as head-and-shoulders
Identify “half-mast” chart patterns such as flags and pennants Identify “half-mast” chart patterns such as flags and pennants

8. Short-Term Patterns *Lesson # Change* 9. Short-Term Patterns

Locate reversals in longer-term trends using short-term price Locate reversals in longer-term trends using short-term price
patterns patterns
Describe the types of gaps that occur on price charts and their Describe the types of gaps that occur on price charts and their
significance significance
Recognize wide-range and narrow-range bars and their Recognize wide-range and narrow-range bars and their
implications for volatility implications for volatility
Identify one and two-bar reversal patterns Identify one and two-bar reversal patterns
Identify common candlestick patterns and their significance Identify common candlestick patterns and their significance
within a trend within a trend
 2020 Curriculum 2021 Curriculum

Section II: Charts, Trends, and Patterns Section II: Charts, Trends, and Patterns

*NEW Lesson* 10. Introduction to Volume Analysis

Define volume
Define open interest
Define the terms related to volume as discussed in this chapter
Describe how volume provides information on liquidity and
participation
Describe how volume adds perspective to price action

*NEW Lesson* 11. Volume: The Technician’s Decryption Device

State the implications of volume changes for price trends
Identify trends in price and volume in a chart
Describe how volume is displayed in a Volume-at-Price chart
Define VWAP
Describe Equivolume charts
Explain how open interest rises and falls
State the implications of open interest changes for price trends

*NEW Lesson* 12. An Introduction to Volume Indicators

List the seven types of volume indicators
Describe the major differences among the types of volume
indicators
 2020 Curriculum 2021 Curriculum

Section II: Charts, Trends, and Patterns Section II: Charts, Trends, and Patterns

9. Confirmation *Lesson # Change* 13. Confirmation

Define terms including overbought, oversold, failure swings, Define terms including overbought, oversold, failure swings,
divergence and reversal divergence and reversal
Identify the methods of plotting volume information on price Identify the methods of plotting volume information on price
charts charts
Explain general rules for interpreting volume data Explain general rules for interpreting volume data
List the major indexes and oscillators designed to use volume List the major indexes and oscillators designed to use volume
as confirmation as confirmation
Describe open interest and how it might be used for Describe open interest and how it might be used for
confirmation confirmation
Explain the concept of momentum in price action Explain the concept of momentum in price action
Identify characteristics and applications of indexes and Identify characteristics and applications of indexes and
oscillators such as MACD, RSI and stochastics oscillators such as MACD, RSI and stochastics

10. Candlestick Charting Essentials *Lesson # Change* 14. Candlestick Charting Essentials
Describe strengths and limitations of candle charts Describe strengths and limitations of candle charts
Identify the components of individual candle lines - real Identify the components of individual candle lines - real
bodies and shadows bodies and shadows
Explain how candles graphically depict the high, low, open, Explain how candles graphically depict the high, low, open,
and close of a trading period and close of a trading period
Identify candle confirmations of support and resistance Identify candle confirmations of support and resistance
 2020 Curriculum 2021 Curriculum

Section II: Charts, Trends, and Patterns Section II: Charts, Trends, and Patterns

11. Point-and-Figure Charting *Lesson # Change* 15. Point-and-Figure Charting

List three important characteristics of point-and-figure charts List three important characteristics of point-and-figure charts

Define “box size” and “reversal” Define “box size” and “reversal”

Describe how point-and-figure charts are constructed Describe how point-and-figure charts are constructed

Explain the importance of box size to the sensitivity of point- Explain the importance of box size to the sensitivity of point-
and-figure charts and-figure charts

Review the construction of various box size and reversal point- Review the construction of various box size and reversal point-
and-figure charts and-figure charts

Identify common point-and-figure patterns Identify common point-and-figure patterns

Explain how trendlines are drawn on point-and-figure charts Explain how trendlines are drawn on point-and-figure charts

Locate basic signals on a point-and-figure chart Locate basic signals on a point-and-figure chart

Describe the concept of price targets attained by using a Describe the concept of price targets attained by using a
horizontal or vertical count on a point-and-figure chart horizontal or vertical count on a point-and-figure chart
 2020 Curriculum 2021 Curriculum

Section III: Advanced Concepts in Charting and Section III: Advanced Concepts in Charting and
Trend Analysis Trend Analysis

12. Introduction to the Wave Principle *Lesson # Change* 16. Introduction to the Wave Principle
Describe the basic operating theory of the Wave Principle Describe the basic operating theory of the Wave Principle
Define motive waves and corrective waves Define motive waves and corrective waves
Identify types of motive waves such as impulse, extension and Identify types of motive waves such as impulse, extension and
diagonal diagonal
Identify types of corrective waves such as zigzag, flat and triangle Identify types of corrective waves such as zigzag, flat and triangle
Label waves using standard Elliott Wave notation Label waves using standard Elliott Wave notation
Describe Fibonacci relationships as applied to Elliott Wave analysis Describe Fibonacci relationships as applied to Elliott Wave analysis

13. The Anatomy of Elliott Wave Trading *Lesson # Change* 17. The Anatomy of Elliott Wave Trading
Match the waves as labeled on a chart to the description in the text Match the waves as labeled on a chart to the description in the text
List the waves considered the most advantageous to trade List the waves considered the most advantageous to trade
Describe trade signals associated with various wave patterns Describe trade signals associated with various wave patterns

14. Measuring Market Strength *Lesson # Change* 18. Measuring Market Strength
Explain the concept of divergence Explain the concept of divergence
Define market breadth Define market breadth
Identify signals of change in market breadth using the advance- Identify signals of change in market breadth using the advance-
decline line decline line
Describe other measures of internal stock-market strength such as Describe other measures of internal stock-market strength such as
McClellan’s calculations McClellan’s calculations
Explain the use of volume in measuring stock-market strength Explain the use of volume in measuring stock-market strength
Identify measures of stock-market strength from new high and new Identify measures of stock-market strength from new high and new
low data low data
Describe measures of stock-market strength based on the number Describe measures of stock-market strength based on the number
of stocks priced above their moving average of stocks priced above their moving average
 2020 Curriculum 2021 Curriculum

Section III: Advanced Concepts in Charting and Section III: Advanced Concepts in Charting and
Trend Analysis Trend Analysis

15. Foundations of Cycle Theory *Lesson # Change* 19. Foundations of Cycle Theory
Name the two types of cycles Name the two types of cycles
Identify the three defining characteristics of a cycle Identify the three defining characteristics of a cycle
List and define Hurst’s seven Principles of Commonality List and define Hurst’s seven Principles of Commonality
Define a composite wave Define a composite wave
Identify left and right translation Identify left and right translation
Describe a dominant cycle Describe a dominant cycle
Recall the tools which aid in cycle identification Recall the tools which aid in cycle identification

16. Basics of Cycle Analysis *Lesson # Change* 20. Basics of Cycle Analysis
Explain how the annual cycle conforms to cycle theory Explain how the annual cycle conforms to cycle theory
Describe two methods of detrending price data Describe two methods of detrending price data
Restate common seasonal tools Restate common seasonal tools
Memorize notable economic cycles and their periods Memorize notable economic cycles and their periods
Recall some sequences/nonlinear cycles Recall some sequences/nonlinear cycles
 2020 Curriculum 2021 Curriculum

Section IV: Markets and Volatility Section IV: Markets and Volatility

17. Markets, Instruments, Data, and the Technical *Lesson # Change* 21. Markets, Instruments, Data, and the Technical
Analyst Analyst
Name four asset classes amenable to technical analysis Name four asset classes amenable to technical analysis
List five tradeable instruments that a technician is likely to List five tradeable instruments that a technician is likely to
employ employ
Describe data-handling issues with which a technician Describe data-handling issues with which a technician
should be familiar should be familiar

18. Equities *Lesson # Change* 22. Equities

Define equity securities and primary data types Define equity securities and primary data types
Describe the benefits of equities for investors Describe the benefits of equities for investors
Identify the effect of corporate actions on price data Identify the effect of corporate actions on price data
Classify sectors, capitalization, and other ways to segment Classify sectors, capitalization, and other ways to segment
the market the market

19. Indexes *Lesson # Change* 23. Indexes

Identify major global equity indexes Identify major global equity indexes
Name common non-equity indexes used by technical Name common non-equity indexes used by technical
analysts analysts
Explain weighting methods used in major indexes Explain weighting methods used in major indexes
Define “survivorship bias” Define “survivorship bias”
 2020 Curriculum 2021 Curriculum

Section IV: Markets and Volatility Section IV: Markets and Volatility

20. Fixed Income/Bonds *Lesson # Change* 24. Fixed Income/Bonds

List the major types of issuers of debt securities List the major types of issuers of debt securities
Identify the basic terms of a debt instrument: issuer, coupon, Identify the basic terms of a debt instrument: issuer, coupon,
maturity maturity
State the ways in which debt prices are expressed State the ways in which debt prices are expressed
Explain the relationship between price and yield Explain the relationship between price and yield
Define “yield curve” Define “yield curve”
Describe the importance of US government debt in the Describe the importance of US government debt in the
pricing of other debt securities: “yield or credit spread” pricing of other debt securities: “yield or credit spread”

21. Futures *Lesson # Change* 25. Futures

Explain the purpose of futures markets Explain the purpose of futures markets
Classify various futures markets as industrial, agricultural, Classify various futures markets as industrial, agricultural,
financial, etc. financial, etc.
List the major terms of a futures contract List the major terms of a futures contract
Define open interest in futures Define open interest in futures
Describe challenges technicians face when using futures Describe challenges technicians face when using futures
market data market data

22. Exchange-Traded Products (ETPs) *Lesson # Change* 26. Exchange-Traded Products (ETPs)
Define an exchange-traded product Define an exchange-traded product
Review differences between exchange-traded funds (ETF) Review differences between exchange-traded funds (ETF)
and exchange-traded notes (ETN) and exchange-traded notes (ETN)
Describe the uses for leveraged ETPs Describe the uses for leveraged ETPs
 2020 Curriculum 2021 Curriculum

Section IV: Markets and Volatility Section IV: Markets and Volatility

23. Foreign Exchange (Currencies) *Lesson # Change* 27. Foreign Exchange (Currencies)
Identify the base and quote currencies in a pair Identify the base and quote currencies in a pair
Classify currency pairs as “major” or “cross” Classify currency pairs as “major” or “cross”
Discuss the impact on technical analysis of the “dealer Discuss the impact on technical analysis of the “dealer
market” system of currency trading market” system of currency trading
Explain the data used in building currency charts Explain the data used in building currency charts
Describe cryptocurrencies Describe cryptocurrencies

24. Options *Lesson # Change* 28. Options

Explain the purpose of options markets Explain the purpose of options markets
List the major terms of an option contract List the major terms of an option contract
Describe “the Greeks” Describe “the Greeks”
Define implied volatility Define implied volatility

25. Understanding Implied Volatility *Lesson # Change* 29. Understanding Implied Volatility
Explain the difference between historical and implied Explain the difference between historical and implied
volatility volatility
Describe the concept of put-call parity Describe the concept of put-call parity
Discuss how implied volatility may be used to estimate price Discuss how implied volatility may be used to estimate price
movement movement
State how to calculate single-day implied volatility State how to calculate single-day implied volatility

26. About the VIX Index *Lesson # Change* 30. About the VIX Index
Describe the components of the VIX index Describe the components of the VIX index
Explain the implications of a rising or falling VIX index Explain the implications of a rising or falling VIX index
State how to calculate expected 30-day market movement State how to calculate expected 30-day market movement
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Section V: Behavioral Finance and Other Theories Section IV: Markets and Volatility
of Market Dynamics

27. What is the Efficient Market Hypothesis *Lesson # Change* 31. What is the Efficient Market Hypothesis
Identify the basic concept of the Efficient Market Hypothesis Identify the basic concept of the Efficient Market Hypothesis
(EMH) (EMH)
Describe the three forms of the EMH Describe the three forms of the EMH
Explain the characteristics of stock prices as a martingale Explain the characteristics of stock prices as a martingale
Describe how randomly generated output can appear non- Describe how randomly generated output can appear non-
random and how that might relate to asset prices and returns random and how that might relate to asset prices and returns
Identify the three areas in which behavioral finance Identify the three areas in which behavioral finance
challenges the EMH challenges the EMH

28. The EMH and the “Market Model” 28. The EMH and the “Market Model”
Describe the basic components of the CAPM model Describe the basic components of the CAPM model
Identify valid criticisms of the CAPM model Identify valid criticisms of the CAPM model

29. The Forerunners to Behavioral Finance *Lesson # Change* 32. The Forerunners to Behavioral Finance
Explain momentum strategies and mean-reversion strategies Explain momentum strategies and mean-reversion strategies
Define the general concept of value investing Define the general concept of value investing
Describe why value investing is similar to a mean-reversion Describe why value investing is similar to a mean-reversion
Explain how value investing (Graham and Dodd) conflicts Explain how value investing (Graham and Dodd) conflicts
with the EMH with the EMH
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Section V: Behavioral Finance and Other Theories Section IV: Markets and Volatility
of Market Dynamics

30. Noise Traders and the Law of One Price *Lesson # Change* 33. Noise Traders and the Law of One Price
Define “fungibility” in the context of financial markets Define “fungibility” in the context of financial markets
Explain “arbitrage” Explain “arbitrage”
Describe “noise” vs. “information” Describe “noise” vs. “information”
Define “noise trader” Define “noise trader”

31. Noise Traders as Technical Traders *Lesson # Change* 34. Noise Traders as Technical Traders
Explain why technical traders are considered a specific type Explain why technical traders are considered a specific type
of noise trader of noise trader
Describe the actions of technical traders as noise traders in Describe the actions of technical traders as noise traders in
the context of market valuation the context of market valuation

32. Noise Traders as Technical Traders *Lesson # Change* 35. Noise Traders as Technical Traders
Describe how technical analysis remains relevant despite the Describe how technical analysis remains relevant despite the
EMH EMH
Discuss how the Adaptive Market Hypothesis reconciles the Discuss how the Adaptive Market Hypothesis reconciles the
EMH with technical and behavioral factors EMH with technical and behavioral factors

33. Market Sentiment and Technical Analysis *Lesson # Change* 36. Market Sentiment and Technical Analysis
Define “sentiment” as it relates to financial markets Define “sentiment” as it relates to financial markets
Discuss the importance of the “crowd“ Discuss the importance of the “crowd“
Describe the challenges of using sentiment indicators Describe the challenges of using sentiment indicators
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Section V: Behavioral Finance and Other Theories Section IV: Markets and Volatility
of Market Dynamics

34. Sentiment Measures from Market Data *Lesson # Change* 37. Sentiment Measures from Market Data
Describe VIX as a sentiment measure Describe VIX as a sentiment measure

Explain the use of options volume and open interest as Explain the use of options volume and open interest as
sentiment indicators sentiment indicators

Describe the use of futures open interest in gauging Describe the use of futures open interest in gauging
sentiment sentiment

Identify the three primary groups in the Commitments of Identify the three primary groups in the Commitments of
Traders report Traders report

Define short interest Define short interest

Explain insider activity as a sentiment indicator Explain insider activity as a sentiment indicator

35. Sentiment Measures from External Data *Lesson # Change* 38. Sentiment Measures from External Data
Describe the use of news and advisories as sentiment Describe the use of news and advisories as sentiment
measures measures

Explain the concept of contrary opinion Explain the concept of contrary opinion

Indicate how mutual fund cash and other funds measures are Indicate how mutual fund cash and other funds measures are
used to gauge sentiment used to gauge sentiment
 2020 Curriculum 2021 Curriculum

Section VI: Basic Statistics for the Technical Analyst Section VI: Basic Statistics for the Technical Analyst

36. Introduction to Descriptive Statistics *Lesson # Change* 39. Introduction to Descriptive Statistics
Describe the three most common measures of central Describe the three most common measures of central
tendency: mean, median, and mode tendency: mean, median, and mode

Discuss alternative methods of calculating the mean and Discuss alternative methods of calculating the mean and
their uses their uses

Describe what is meant by “measures of dispersion” Describe what is meant by “measures of dispersion”

Explain two measures of dispersion: standard deviation and Explain two measures of dispersion: standard deviation and
variance variance

State the value of data visualization as a complement to State the value of data visualization as a complement to
descriptive statistics descriptive statistics

37. Introduction to Probability *Lesson # Change* 40. Introduction to Probability

Define probability Define probability

Explain the impact of the law of large numbers on a series of Explain the impact of the law of large numbers on a series of
outcomes outcomes

Define random variable and the phrase “independent and Define random variable and the phrase “independent and
identically distributed” identically distributed”

Describe a normal probability distribution Describe a normal probability distribution

Identify skew and kurtosis Identify skew and kurtosis

 2020 Curriculum 2021 Curriculum

Section VII: Perspectives on Technical Trading Section VII: Perspectives on Technical Trading
Systems Systems

38. Objective Rules and Their Evaluation *Lesson # Change* 41. Objective Rules and Their Evaluation
Describe objective and subjective methods in technical Describe objective and subjective methods in technical
analysis analysis

Define “rule” as used in trading systems Define “rule” as used in trading systems

Explain binary rules as well as individual and multiple Explain binary rules as well as individual and multiple
thresholds thresholds

Identify traditional rules and inverse rules Identify traditional rules and inverse rules

Describe the key components of “trading costs” Describe the key components of “trading costs”

Discuss the importance of benchmarking in evaluating Discuss the importance of benchmarking in evaluating
trading rules trading rules

Describe the value of using detrended prices Describe the value of using detrended prices

39. Being Right or Making Money *Lesson # Change* 42. Being Right or Making Money
List the four key characteristics Ned Davis claims are List the four key characteristics Ned Davis claims are
common to successful investors common to successful investors

Describe the importance of having plans to persevere Describe the importance of having plans to persevere
through mistakes and losses through mistakes and losses

Identify Ned Davis’ nine rules to consider when building a Identify Ned Davis’ nine rules to consider when building a
timing model timing model

Discuss the theory behind “contrary opinion” Discuss the theory behind “contrary opinion”
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Section VII: Perspectives on Technical Trading Section VII: Perspectives on Technical Trading
Systems Systems

40. The Model Building Process *Lesson # Change* 43. The Model Building Process
Describe “internal” and “external” indicators Describe “internal” and “external” indicators

Explain the use of valuation indicators as sentiment Explain the use of valuation indicators as sentiment
measures measures

Describe the basic relationships of economic growth, Fed Describe the basic relationships of economic growth, Fed
policy and money supply policy and money supply

Discuss the use of moving average signals based on Discuss the use of moving average signals based on
“crossings” and “slopes” “crossings” and “slopes”

Explain the use of price momentum and indicator Explain the use of price momentum and indicator
momentum momentum

Identify the problem of curve-fitting, or overoptimization Identify the problem of curve-fitting, or overoptimization

41. Relative Strength as a Criterion for Investment *Lesson # Change* 44. Relative Strength as a Criterion for Investment
Selection Selection
Define relative strength Define relative strength

Explain the value of relative strength in analyzing stock price Explain the value of relative strength in analyzing stock price
movements movements

List several relative strength ratios that may be calculated List several relative strength ratios that may be calculated

Identify some of the limitations of relative strength in Identify some of the limitations of relative strength in
investment decisions investment decisions