Chartered Market Technician

Chartered Market Technician (CMT) Program Level 1 Spring 2012 Reading Assignments The CMT 1 candidate is responsible for the material on a definition level. The candidate must understand the terminology used in these readings, be able to describe the concepts discussed in these readings, and be able to examine trends. The CMT Level 1 Exam measures basic, entry-level competence. The CMT 1 candidate should have a working knowledge of the basic tools of the technician. Exam time length: 2 hours Exam format: Multiple Choice Immediate scoring will be available this exams.CMT Level 1 Exam tests the candidate's knowledge of six basic areas of technical analysis: 1) Terminology of technical analysis 2) Methods of charting 3) Determination of price trends/basics of pattern recognition 4) Establishing price targets 5) Equity market analysis 6) Applying technical analysis to bonds, currencies, futures and options Listed below and on the following page are the reading assignments for the Level 1 Exam. The CMT candidate is responsible for knowing and understanding the entire list of reading assignments. ***********************************************************************************CMT Level 1 Exam Reading Assignments 1) MTA Code of Ethics (attached at the end of this document) 2) Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition, CRC Press, Taylor & Francis Group, Boca Raton, Florida, c2007, ISBN 0-8493-3772-0 Chapters: 1. The Technical Approach to Trading and Investing 2. Charts 3. The Dow Theory 4. The Dow Theory in Practice 5. The Dow Theory’s Defects 5. 1 The Dow Theory in the 20th and 21st Centuries 6. Important Reversal Patterns 7. Important Reversal Patterns – Continued 8. Important Reversal Patterns – The Triangles 9.Important Reversal Patterns – Continued 10. Other Reversal Phenomena 10. 1 Short-Term Phenomena of Potential Importance 11. Consolidation Formations 12. Gaps 13. Support and Resistance 14 . Trendlines and Channels 15. Major Trendlines 15. 1 Trading the Averages in the 21st Century 16. Technical Analysis of Commodity Charts 16. 1 Technical Analysis of Commodity Charts, Part 2 17. 2 Advancements in Investment Technology 23. Choosing and Managing High-Risk Stocks 25. Two Touchy Questions 27. Stop Orders 28. What Is A Bottom – What Is A Top? 29. Trendlines in Action 30. Use of Support and Resistance 31.Not All in One Basket 38. Balanced and Diversified 39. Trial and Error 40. How Much Capital to Use in Trading 41. Application of Capital in Practice 42. Portfolio Risk Management 43. Stick to Your Guns Appendix â€Å"C† Technical Analysis of Futures Charts 3) Kirkpatrick, Charles D. and Dahlquist, Julie R. : Technical Analysis The Complete Resource for Financial Market Technicians, Pearson Education, Inc. , Upper Saddle River, New Jersey 07458, c. 2006, ISBN 10:0-13-153113-1 Chapters: 1. Introduction to Technical Analysis 2. The Basic Principle of Technical A nalysis – The Trend 3. History of Technical Analysis 4.The Technical Analysis Controversy 5. An Overview of Markets 6. Dow Theory 8. Measuring Market Strength 9. Temporal Patterns and Cycles 10. Flow of Funds 11. History and Construction of Charts 12. Trends – The Basics 14. Moving Averages 15. Bar Chart Patterns 17. Short-Term Patterns 18. Confirmation 19. Cycles 20. Elliott, Fibonacci, and Gann 21. Selection of Markets and Issues: Trading and Investing 23. Money and Risk Management Appendix â€Å"A† Basic Statistics Appendix â€Å"B† Types of Orders and Other Trader Terminology 4) Pring, Martin J. : Technical Analysis Explained, 4th Edition, McGraw Hill Book Company, New York, NY, c. 001, ISBN 007-138193-7 Chapters: 2. Financial Markets and the Business Cycle 3. Dow Theory 4. Typical Parameters for Intermediate Trends 5. Price Patterns 6. Smaller Price Patterns 7. One- and Two-Bar Price Patterns 8. Trendlines 9. Moving Averages 10. Momentum Principles 1 1. Individual Momentum Indicators I 12. Individual Momentum Indicators II 13. Candle Charts 15. Miscellaneous Techniques for Determining Trends 16. The Concept of Relative Strength 18. Price: The Major Averages 19. Price: Group Rotation 20. Time: Longer-Term Cycles 22. Volume: General Principles 23. Volume Oscillators 24. Breadth 25.Why Interest Rates Affect the Market 26. Sentiment Indicators 27. Applying Technical Analysis to the Theory of Contrary Opinion 28. Checkpoints for Identifying Primary Stock Market Peaks and Troughs 29. Automated Trading Systems 30. Technical Analysis of Global Stock Markets 31. Technical Analysis of Individual Stocks 5) Jeremy du Plessis, The Definitive Guide to Point and Figure, Harriman House LTD, 2009, ISBN 1-897-59763-0. Click on the following link to buy it at an MTA member’s special discount: www. updata. co. uk/shop/mtabookoffer. asp Chapters: 1. Introduction to Point and Figure Charts 2.Characteristics and Construction 3. Understanding Po int and Figure Charts 4. Projecting Price Targets Revised November 2011 Market Technicians Association CODE OF ETHICS Amended December 2004 The Market Technicians Association has established ethical standards of professional conduct which every Member and Affiliate shall maintain. The Ethical Standards set forth in 1 through 9 serve as a guide of professional responsibility and as a benchmark for ethical judgment. 1. Members and Affiliates shall maintain at all times the highest standards of professional competence, integrity and judgment.Said standards should be maintained, and members and affiliates should act with dignity and in an ethical manner when dealing with the public, clients, prospects, employees, fellow Members and Affiliates and business associates. This ethical standard requires strict compliance with the applicable laws and regulations of any government, governmental agency and regulatory organization which has jurisdiction over the professional activities of Members and Affiliates. This same ethical standard requires that Members and Affiliates abide by the Constitution and By-Laws of the Association, and all rules promulgated by its Board of Directors.Members and Affiliates shall not unduly exploit their relationship with the Association for commercial purposes, nor use, or permit others to use, Association mailing lists for other than Association purposes. 2. Members and Affiliates shall not publish or make statements which they know or have reason to believe are inaccurate or misleading. Members and Affiliates shall avoid leading others to believe that their technically-derived views of future security price behavior reflect foreknowledge rather than estimates and projections subject to reexamination and, as events may dictate, to change. . Members and Affiliates shall not publish or make statements concerning the technical position of a security, a market or any of its components or aspects unless such statements are reasonable and consist ent in light of the available evidence and of the accumulated knowledge in the field of financial technical analysis. New methods of technical analysis and modifications of existing concepts and techniques shall be fully documented as to procedure and rationale.Proprietary methods shall not be infringed, but this standard shall be a guide in the creation of proprietary products. 4. Members and Affiliates shall not publish or make statements which indefensibly disparage and discredit the analytical work of others. 5. Members and Affiliates shall not seek, disseminate or act on the basis of material, non-public (inside) information, if to do so would violate the laws and regulations of any government, governmental agency or regulatory organization relating to the use of inside information. . Members and Affiliates shall keep in confidence knowledge concerning the lawful private affairs of both past and present clients, employers, and employer’s clients. 7. When a Member or Affi liate recommends that a security ought to be bought, sold or held, adequate opportunity to act on such a recommendation shall be given to the Member’s or Affiliate’s clients, employer, and the employer’s clients before acting on behalf of either the Member’s or Affiliate’s own account or the accounts of immediate family members. 8.Members and Affiliates shall not copy or deliberately use substantially the same language or analysis contained in reports, studies or writings prepared by any author unless permission to do so is received, in advance, from the author. In the event the original author is deceased, or is otherwise unavailable to grant such permission, Members and Affiliates must ensure that the original author receives prominent and adequate credit for the original work. 9. Members who have earned the CMT designation shall use CMT after their name whenever and wherever appropriate.