Technical Analysis Module
Technical Analysis is a growing field in the area of the financial sector. This exam aims at preparing with a view to providing comprehensive and in-depth knowledge about technical analysis and understand the strengths and weaknesses of the same.
Target Audience
The exam is targeted towards the following mentioned audience:
- Firstly, Students
- Secondly, Stock Analysts
- Thirdly, Finance Professionals
- Also, Employees with the Treasury & Investment division of banks and financial institutions
- Lastly, Anybody having an interest in this subject
Technical Analysis Exam Details
Technical Analysis Module exam covers 60 questions that are to be complete in 120 minutes. Moreover all NCFM Technical Analysis Module Exam Questions are in Multiple Choice Format. Also the certification is valid for 5 years. Moreover, the Technical Analysis Questions are available in English language only.
| Exam Name | Technical Analysis Module |
| Exam Vendor | NSE – National Stock Exchange of India Ltd. |
| Exam Level | Intermediate |
| Certification Validity | 5 Years |
| Exam Language | English |
| Exam Format | Multiple Choice Questions |
| Exam Duration | 120 minutes |
| Number of Questions | 60 |
| Passing Score | 60% |
| Negative Marking | Yes |
Exam Registration
Candidates can register online by accessing the link ‘Online Registration’ available under Education>Certifications>Online Register / Enroll.
Once registered, you will get a unique NCFM registration number along with a user id and password. Confirmation will be sent to the email id and mobile number entered during registration. Using the same, you can access your online NCFM account to make payment / enroll for test/update address/check study material status/view certificates, etc.
Frequently Asked Questions
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NCFM Technical Analysis Module Course Outline
INTRODUCTION TO TECHNICAL ANALYSIS
What is technical analysis?
- Price discounts everything
- Price movements are not totally random
- Technical Analysis: the basic assumption
- Strengths and weakness of technical analysis
- Importance of technical analysis
- Weaknesses of technical analysis
CANDLE CHARTS
The charts
Candlestick analysis
- One candle pattern
- Hammer
- Hanging man
- Shooting star and inverted hammer
- Two candle pattern
- Bullish engulfing
- Bearish engulfing
- Piercing
- Bearish harami
- Bullish harami
- Three candle pattern
- Evening star
- Morning star
- Doji
PATTERN STUDY
What are support and resistance linesSupport
- Resistance
- Why do support and resistance lines occur?
- Support and resistance zone
- Change of support to resistance and vice versa
- Why are support and resistance lines important?
Head and shoulders
- Head and shoulders top reversal
- Inverted head and shoulders
- Head and shoulders bottom
Double top and double bottom
- Double top
- Double bottom
- Rounded top and bottom
Gap theory
- Common gaps
- Breakaway gaps
- Runaway/continuation gap
- Exhaustion gap
- Island cluster
MAJOR INDICATORS & OSCILLATORS
What does a technical indicator offer?
- Why use indicators?
- Tips for using indicators
- Types of indicator
- Simple moving average
- Exponential moving average
- Which is better?
Trend following indicator
- When to use?
- Moving average settings
- Uses of moving average
- Signals – moving average price crossover
- Signals – multiple moving averages
Oscillators
- Relative strength index
- What is momentum?
- Applications of RSI
- Overbought and oversold
- Divergence
- Stochastic
- William %R
- Real-life problems in the use of RSI
- Advanced concepts
- Moving average convergence/divergence(MACD)
- What is the macd and how is it calculate
- MACD benefits
- uses of MACD
- Money Flow Index
- Bollinger Bands
Using multiple indicators for trading signals
- Price sensitive technique
- Volume sensitive techniques
- Composite methods
- How to use tool kit of trading techniques
- Trading market tool kit applications
- Bull market tool kit application
- Bear market tool kit application
- Trading market changing to bull market tool kit application
- Trading market changing to bear market tool kit application
- Bull market changing to trading market tool kit application
- Bear market changing to trading market tool kit application
TRADING STRATEGIES
Day trading
- Advantages of day trading
- Risks associated with risk day trading
Strategies
- Strategies for day trading
- Momentum trading strategies
DOW THEORY AND ELLIOT WAVE THEORY
Introduction
Principles of Dow Theory
Significance of Dow Theory
Problems with Dow Theory
Elliot Wave
- Introduction
- Fundamental Concept
- After Elliot
TRADING PSYCHOLOGY AND RISK MANAGEMENT
Introduction
Risk Management
- Components of risk management
- Stop loss
- Analyze reward risk ratio
- Trail stop loss
- Booking Profit
- Uses of stop-loss
- Qualities of a successful trader
- Golden rules of traders
- Do’s and don’ts in trading
Rules to stop losing money
Choosing the right market to trade
- Importance of discipline in trading
Preparatory Guide – Technical Analysis
Before you get started, you must refer to the following NCFM Technical Analysis Module Study Guide that mentions all the relevant and possible learning resources that are ideally required for the exam preparation.
Refer to Exam Objectives
For Technical Analysis, NCFM provides the course outline. This course outline includes topics categorized into various sections and subsections, thus, helping candidates to start their preparation in a sequential way. For the test, the course outline includes:
- Firstly, INTRODUCTION TO TECHNICAL ANALYSIS
- Secondly, CANDLE CHARTS
- Thirdly, PATTERN STUDY
- Fourthly, MAJOR INDICATORS & OSCILLATORS
- Also, TRADING STRATEGIES
- Furthermore, DOW THEORY AND ELLIOT WAVE THEORY
- Lastly, TRADING PSYCHOLOGY AND RISK MANAGEMENT
Online Course
The NSE Academy offers the self-study course for Technical Analysis. Enrolling in here can help you understand all the fundamentals and essential concepts. Furthermore, this will lead to help you prepare for the test.
NSE Knowledge Hub
NSE Knowledge Hub is an AI-First and Mobile-First ecosystem of personalized and community-based learning. This is a unique Artificial Intelligence (AI) powered learning platform specially created for financial learning and to assist the BFSI sector in enhancing skills for their employees and helping academic institutions in preparing future-ready talent skilled for the financial services industry.
- Firstly, become familiar with banking, insurance, and finance topics, discover content in various domains in finance
- Secondly, formal and informal learning through hours of curated content tailored to the individual’s areas of interests and goals
- Lastly, Up-Skill by enrolling in free or paid deep skilling pathways at a marketplace with well-known providers of courses, assessments, labs, and credentials
NCFM Technical Analysis Module Study Material
NSE provides a workbook for its all certification exam that can be issued only after making payment for the module. This can be easily downloaded by logging into your account from the E-Library option. However, NSE also offers candidates to purchase the Workbooks for NCFM modules by sending a request letter. This has to be done along with a demand draft of Rs. 500/- per module per workbook. These Technical Analysis Books strengthen your core concepts for the exam.
Practice Tests
Self-evaluation with NCFM Technical Analysis Module Mock Tests provides you with greater insight into your preparation. Before the actual certification test, indeed, it is highly recommended to give practice tests. Moreover, it will help you determine your skills and preparation, making you familiar with the exam pattern.
Assess your knowledge and evaluate yourself with the latest and updated NCFM Technical Analysis Module Practice Test that TestPrepTraining offers you for FREE!
