CMT (Level 1) Preparatory

COURSE HIGHLIGHT

CMT is an upcoming globally recognized qualification, widely accepted in Indian market technician
corners. It is a certification process in which candidates are required to demonstrate their proficiency in
a broad range of technical analysis subjects. Administered by the Accreditation Committee of the Market
Technicians Association (MTA), Inc., U.S., the program consists of three levels:

Level 1 - multiple choice exam; Level 2 - also a multiple choice exam; Level 3 - the essay portion of the
exam.

A CMT gets membership with MTA which allows the individual to use the CMT Charter after some years of
experience.

The Chartered Market Technician (CMT) designation is the culmination of a certification process in which
candidates are required to demonstrate proficiency in a broad range of technical analysis of the financial
markets. It is made up of an educational component, an experience requirement, an ethics requirement
and a membership requirement.

Financial Corridors CMT preparatory class will guide and prepare students for the Level 1 Chartered
Market Technicians (CMT) exam.
The Course contents will include:

Definition of Technical Analysis

Types of Charts

Dow Theory

Trends

Indicators Leading and Lagging

Chart Pattern Analysis

Short Term

Patterns Japanese Candlesticks

Measuring Market Strength

Retracement

Money management

Trend Confirmation - Volume

Open Interest and Price

Sentiment Analysis

Temporal Patterns and Cycles

Point and Figure

Introduction to Elliot Wave

Fibonacci Analysis

Inter-market Analysis

Efficient Market Hypothesis & Behavioral Finance considerations

Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition

Kirkpatrick, Charles D. and Dahlquist, Julie R.: Technical Analysis The Complete Resource for Financial Market
Technicians

Pring, Martin J.: Technical Analysis Explained, 4th Edition

Jeremy du Plessis, The Definitive Guide to Point and Figure

Frost, A.J. and Prechter, Robert R., Elliott Wave Principle, Tenth Edition

Kaufman, Perry J., New Trading Systems and Methods, 4th Edition

Nison, Steve, Japanese Candlestick Charting Techniques, 2nd Edition

Pring, Martin J., Investment Psychology Explained

Aronson, David R.: Evidence-Based Technical Analysis

Brown, Constance M., Technical Analysis for the Trading Professional

Murphy, John J., Intermarket Analysis: Profiting From Global Market Relationships

Shiller, Robert J., Irrational Exuberance, 2nd Edition

Time Limit:
Cost:

2 hours and 15 minutes

$250, plus a program registration fee of $250

Number of Questions:

120, plus 12 "pre-test" questions

Format: Multiple Choice

Exam Date(s):

Twice a year in April/May and October

Certificate Chartered Market Technician (and shortened C.M.T) is an

international license granted by The Market Technician Association for those
interested in learning technical analysis, CMT professional license is supported by
the U.S. stock exchange SEC and NASDAQ.

Prepare for Level I of the Chartered Market Technician (CMT) exam. Our
comprehensive program is designed to maximize your chances for success. In
addition, you will be guided by our expert instructors who have many years of
experience managing Wall Street funds. Unlike other review courses that merely
show technical principles, you will be taught to apply the material learned and
attempt to create and innovate profitable investing and trading strategies. You will
also discuss current market situations in the bond, commodity, currency, equity,
futures and options markets. Sample problems from past actual market charts will
also be discussed, and recommended readings from leading textbooks will be listed
for each section. You will also be provided with one of the textbooks required for the
exam.

CMT Examination Preparation/Technical Analysis - Day

Prepare for Level I of the Chartered Market Technician (CMT) exam. Our comprehensive
program is designed to maximize your chances for success. In addition, you will be guided by
our expert instructors who have many years of experience managing Wall Street funds. Unlike
other review courses that merely show technical principles, you will be taught to apply the
material learned and attempt to create and innovate profitable investing and trading strategies.
You will also discuss current market situations in the bond, commodity, currency, equity, futures
and options markets. Sample problems from past actual market charts will also be discussed, and
recommended readings from leading textbooks will be listed for each section. You will also be
provided with one of the textbooks required for the exam.

"John is an extremely knowledgeable instructor."

"The class included detailed discussions of the topics using current market examples."

Target Audience
Portfolio managers, traders, asset allocators, behavioral economists, strategists, finance
professionals, hedge funds, and those wishing to take the CMT exam.

Learning Objectives
Students will be able to:

Appreciate key technical analytical approaches to investing

Differentiate between fundamental and technical analysis

Explain the role of behavioral finance and technical analysis

Describe the ethical and professional standards expected in technical analysis

Identify reversal and continuation patterns

Set measurement objectives for potential profits

Adjust technical techniques to accommodate both trading and long-term investment

objectives

Use intermarket analysis, statistical and probability analysis

Take current investment situations in the stock, bond, and commodity markets and
attempt to achieve hands-on profits with technical analysis

Understand the role of quantitative techniques and artificial intelligence programs in

technical analysis

Utilize derivatives in technical strategies

Be prepared for the requirements of the Market Technician's CMT Level 1 exam, as well
parts of Level 2 and 3

Course Syllabus

Introduction to Technical
Analysis/Reversal/Continuation Patterns

History of Technical Analysis

Basics of Technical Analysis

Chart Construction,
Arithmetic/Logarithmic

Supply/Demand Philosophy

Dow Theory, Old and New

Head and Shoulders

Triangles, Wedges

Rectangles, Pennants

Measurement Rules

Double/Triple Tops and Bottoms

Diamonds, Climaxes

Cases

Relative Strength and Volume

Relative Strength

Intermarket continued

Volume: OBV, A/D, CLV, and other

Trend Analysis/Momentum

Definition of Trends

Speedlines, Fans, Channels

Support/Resistance

Saucers, Gaps

Artificial Intelligence uses in technical

analysis, quant tools, backtesting,
multicollinearity, outside vendors

Introduction to intermarket analysis:

bonds/stocks, commodities/dollar,
business cycle and industry groups,
strategies

Algorithmic trading

Moving averages, double, triple

Envelopes, Bollinger bands

ROC, MACD, RSI, other stochastics

Trading: day, swing, asset allocation,

investing

Cases

Point and Figure and Gann; Elliott Wave

Theory

Point and figure construction methods

Reversal criteria

Measurement tools, such as horizontal,

measures

vertical, pole

Tick volume, TRIN

GANN, Wyckoff

Money flow

Elliott Wave: characteristics and

measurement objectives

The arms index

Patterns and ratio aspects

Put/Call, CDS

Fibonacci numbers

Introduction to option strategies with

technical analysis

Cases

Statistical and probability concepts

Cases

Cycles/Sentiment and Behavioral

Types of cycles: including

Kondratieff, Kitchin and others

Japanese Candlesticks and

Ethics/Professional Management

Candle types

Cycles concepts: summation,

harmonicity, synchronicity,
proportionality

Candle sequences

Blending with western charts

Classifications

Use with other technical indicators

Intensity, continuation, reversal types special names, such as Marubozu,

Spinning Tops, Doji, Dragon Fly,
Hamari, Hanging Man, etc.

Creation of technical patterns with

cycles

Blending/engulfing

Bubbles - USA, Japan, Saudi Arabia,

China, real estate, etc.

Support/resistance

Candles and traditional charts

Sentiment surveys: traders and

investors

Ethics and professionalism

Sentiment indicators: levels, money

flows, supply/demand, fed model,

TED, fear/greed measures, CDS
measures

Portfolio management

Cases

Put/call ratio

Short index

Special statistical and portfolio theory

appendix

Insider activity

Margin debt

TED, VIX

New indicators

Limits and uses

Behavioral concepts

What is the CMT?

The Chartered Market Technician (CMT) Program is a certification process in which candidates are
required to demonstrate proficiency in a broad range of technical analysis subjects. Administered by
the Accreditation Committee of the Market Technicians Association (MTA), Inc., the Program consists
of three levels. CMT Level 1 and CMT Level 2 are multiple choice exams while CMT Level 3 is in essay
form.
The objectives of the CMT Program are:

To guide candidates in mastering a professional body of knowledge and in developing

analytical skills;

To promote and encourage the highest standards of education; and

To grant the right to use the professional designation of Chartered Market

Technician (CMT) to those members who successfully complete the Program and agree to abide by the
MTA Code of Ethics.
In order to be granted your CMT designation, you must meet the following requirements:

Successful completion of all three (3) levels of the CMT Exam.

Have obtained 'Member Status' within the MTA.

Have been gainfully employed in a professional analytical or investment

management capacity for a minimum period of three (3) years and must be regularly engaged in
this capacity at the time of successfully passing all three (3) levels of the CMT Exam.
Q. What is the format of the exams?

Level 1 132 multiple choice questions

Level 2 160 multiple choice questions

Level 3 essay the entire exam is worth 240 points and candidates are allowed 240
minutes, so candidates should pace their progress so that they do not spend too much time on
minor questions and so that they do allow time for more time consuming questions.

Q. What is the length of the exams?

Level 1 2 hours Level 2 4 hours Level 3 4 hours

Q. What is required of the candidate in the exams?

Level 1 Primarily definitions, this exam is designed to measure basic, entry-level

competence and tests concepts such as terminology, charting methods and ethics.

Level 2 Will include some definitions but will focus on applications of Technical Analysis.
Candidates should understand ethics and more complex theories (e.g., Dow Theory, Elliott
Wave, intermarket, etc.).

Level 3 Tests candidates competency in ethics and in rendering technical opinions

integrating multiple aspects of technical analysis. Essay responses should be of the quality of
technical research published by practicing CMT charterholders.

To know more, pls visit www.mta.org

Our course on Technical Analysis has been designed with a dual objective1. To enable a professional to strike the best of trades where the odds are heavily biased in favor of
success.
2. To have requisite skills for cracking the CMT exams, all 3 levels.