CMT LEVEL I CURRICULUM Table of Contents
SECTION I
CHART DEVELOPMENT AND ANALYSIS Chapter 1 THE BASIC PRINCIPLE OF TECHNICAL ANALYSIS—THE TREND CHARLES D. KIRKPATRICK II AND JULIE R. DAHLQUIST
1. How Does the Technical Analyst Make Money? 2. What Is a Trend? 3. How Are Trends Identified? 4. Trends Develop from Supply and Demand 5. What Trends Are There? 6. What Other Assumptions Do Technical Analysts Make?
Chapter 2 DOW THEORY CHARLES D. KIRKPATRICK II AND JULIE R. DAHLQUIST
1. Dow Theory Theorems 2. Criticisms of the Dow Theory
Chapter 3 HISTORY AND CONSTRUCTION OF CHARTS CHARLES D. KIRKPATRICK II AND JULIE R. DAHLQUIST
1. History of Charting 2. What Data Is Needed to Construct a Chart? 3. What Types of Charts Do Analyst s Use? 4. What Type of Scale Should Be Used?
Chapter 4 TRENDS — THE BASICS CHARLES D. KIRKPATRICK II AND JULIE R. DAHLQUIST
1. Trend—The Key to Profits 2. Trend Terminology 3. Basis of Trend Analysis—Dow Theory 4. How Does Investor Psychology Impac t Trends? 5. How Is the Trend Determined? 6. Determining a Trading Range 7. Directional Trends (Up and Down) 8. Other Types of Trend Lines
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CMT Level I 2018 Table of Contents © 2018 CMT Association, Inc.
Chapter 5 BREAKOUTS, STOPS, AND RETRACEMENTS CHARLES D. KIRKPATRICK II AND JULIE R. DAHLQUIST
1. Breakouts 2. Stops 3. Retracements
Chapter 6 MOVING AVERAGES CHARLES D. KIRKPATRICK II AND JULIE R. DAHLQUIST
1. What Is a Moving Average? 2. How Is a Simple Moving Average Calculated? 3. What Other Types of Moving Averages Are Used? 4. Strategies for Using Moving Averages 5. What Is Directional Movement? 6. What Are Envelopes, Channels, an d Bands?
Chapter 7 BAR CHART PATTERNS CHARLES D. KIRKPATRICK II AND JULIE R. DAHLQUIST
1. What Is a Pattern? 2. Do Patterns Exist? 3. Computers and Pattern Recognition 4. Market Structure and Pattern Recognition 5. Bar Charts and Patterns 6. How Profitable Are Patterns? 7. Classic Bar Chart Patterns 8. Patterns with Rounded Edges—Rounding and Head-and-Shoulders
Chapter 8 SHORT-TERM PATTERNS CHARLES D. KIRKPATRICK II AND JULIE R. DAHLQUIST
1. Pattern Construction and Determination 2. Traditional Short-Term Patterns 3. Summary of Short-Term Patterns 4. Candlestick Patterns
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CMT Level I 2018 Table of Contents © 2018 CMT Association, Inc.
Chapter 9 CONFIRMATION CHARLES D. KIRKPATRICK II AND JULIE R. DAHLQUIST
1. Analysis Methods 2. Volume Confirmation 3. Open Interest 4. Price Confirmation
Chapter 10 CANDLESTICK CHARTING ESSENTIALS STEVE NISON
1. Candlestick Overview: Origins and Basic Applications 2. Candlestick Construction 3. Basic Market Strategies
Chapter 11 POINT-AND-FIGURE CHARTING PERRY J. KAUFMAN
Chapter 12 INTRODUCTION TO THE WAVE PRINCIPLE WAYNE GORMAN, JEFFREY KENN EDY, AND ROBERT R. PRECHTER , JR.
1. Motive Waves 2. Corrective Waves 3. Fibonacci Relationships
Chapter 13 THE ANATOMY OF ELLIOTT WAVE TRADING WAYNE GORMAN, JEFFREY KENN EDY, AND ROBERT R. PRECHTER , JR.
1. How the Wave Principle Improves Trading 2. The Four Best Waves to Trade 3. Elliott Wave Trade Setups 4. When to Trade Corrections 5. Guidelines for Trading Specific Elliott Wave Patterns 6. The Neglected Essentials— Risk Ma nagement and the Psychology of Trading 7. The Psychology of Trading
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CMT Level I 2018 Table of Contents © 2018 CMT Association, Inc.
SECTION II
MARKETS Chapter 14 OVERVIEW (OF FINANCIAL MARKETS) DAVID WILSON
Chapter 15 GOVERNMENT (OF FINANCIAL MARKETS) DAVID WILSON
1. Currencies 2. Bills 3. Notes and Bonds
Chapter 16 COMPANIES DAVID WILSON
1. Money Markets 2. Notes and Bonds 3. Stocks
Chapter 17 HARD ASSETS DAVID WILSON
1. Gold 2. Commodities 3. Real Estate
Chapter 18 INDEXES DAVID WILSON
1. Currency 2. Debt 3. Equity 4. Hard Assets
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CMT Level I 2018 Table of Contents © 2018 CMT Association, Inc.
Chapter 19 MEASURING MARKET STRENGTH CHARLES D. KIRKPATRICK II AND JULIE R. DAHLQUIST
1. Market Breadth 2. Up and Down Volume Indicators 3. Net New Highs and Net New Lows 4. Using Moving Averages 5. Very Short-Term Indicators
Chapter 20 WHAT IS THE EFFICIENT MARKET HYPOTHESIS? EDWIN T. BURTON AND SUNIT N. SHAH
1. Information and the Efficient Market Hypothesis 2. Random Walk, the Martingale Hypothesis, and the EMH 3. False Evidence against the EMH 4. What Does It Mean to Disagree with the EMH?
Chapter 21 THE EMH AND THE “MARKET MODEL” EDWIN T. BURTON AND SUNIT N. SHAH
1. Risk and Return—the Simplest View 2. The Capital Asset Pricing Model (CAPM) 3. What Is the Market Model?
Chapter 22 THE FORERUNNERS TO BEHAVIORAL FINANCE EDWIN T. BURTON AND SUNIT N. SHAH
1. The Folklore of Wall Street Traders 2. The Birth of Value Investing: Graham and Dodd 3. Financial News in a World of U biquitous Television and Internet
Chapter 23 NOISE TRADERS AND THE LAW OF ONE PRICE EDWIN T. BURTON AND SUNIT N. SHAH
1. The Law of One Price and the Case of Fungibility 2. Noise
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Chapter 24 NOISE TRADERS AS TECHNICAL TRADERS EDWIN T. BURTON AND SUNIT N. SHAH
1. Technical Traders as Noise Traders 2. Herd Instinct Models
Chapter 25 OPTION PRICING BASICS EDWIN J. ELTON, MARTIN J. GRUBER , STEPHEN J. BROWN, AND WILLIAM N. GOETZMANN
1. Types of Options
SECTION III STATISTICAL ANALYSIS AND SYSTEM DEVELOPMENT
Chapter 26 OBJECTIVE RULES AND THEIR EVALUATION DAVID ARONSON
1. The Great Divide: Objective versus Subjective Technical Analysis 2. TA Rules 3. Traditional Rules and Inverse Rule s 4. The Use of Benchmarks in Rule Evaluation 5. Other Details: The Look-Ahead Bias and Trading Costs
Chapter 27 BASIC CONCEPTS AND CALCULATIONS PERRY J. KAUFMAN
1. About Data and Averaging 2. On Average 3. Price Distribution
Chapter 28 ACADEMIC APPROACHES TO TECHNICAL ANALYSIS ANDREW W. LO AND JASMINA HASANHODZIC
1. Theoretical Underpinnings 2. Empirical Evaluation 3. Adaptive Markets and Technical Analysis
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Chapter 29 UNDERSTANDING IMPLIED VOLATILITY RUSSELL R HOADS
1. Historical Versus Forward-Looking Volatility 2. Put-Call Parity 3. Estimating Price Movement 4. Valuing Options: Pricing Calculators an d Other Tools 5. Fluctuations Based on Supply and Demand 6. The Impact on Option Prices 7. Implied Volatility and the VIX
Chapter 30 ABOUT THE VIX INDEX RUSSELL R HOADS
1. History of the VIX 2. Calculating the VIX 3. The VIX and Put-Call Parity 4. The VIX and Market Movement 5. Equity Market Volatility Indexes 6. Amex QQQ Volatility Index
SECTION IV INTRODUCTION TO THE TOOLS FOR BUILDING TECHN ICAL INVESTING STRATEGIES
Chapter 31 BEING RIGHT OR MAKING MONEY NED DAVIS
1. Bad News about Forecasting (Being Right) 2. Good News about Making Money 3. Being Right and Other Investment Techniques Are O verrated and Are Not the Keys to Succe ss 4. The Four Real Keys to Making Money 5. The Battle for Investment Survival and Handling Mistakes 6. Stories of Five Successful Winners 7. Making Our Own Reality 8. The Ned Davis Research Response to All This 9. Timing Models 10. What Is Contrary Opinion and How to Use It 11. History and Risk Management
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Chapter 32 THE MODEL–BUILDING PROCESS NED DAVIS
1. The Model-Building Process 2. Where to Start: Model Inputs 3. Sentiment and Valuation Indicators 4. Monetary Indicators 5. Economic Indicators 6. Internal Indicators 7. Moving Averages 8. Crossings and Slopes 9. Momentum 10. Putting Indicators Together
Chapter 33 SEASONALITY AND CALENDAR PATTERNS PERRY J. KAUFMAN
1. A Consistent Factor 2. The Seasonal Pattern 3. Cycle Analysis 4. Cycle Basics
Chapter 34 CONSENSUS AND COMMITMENT INDICATORS DR. ALEXANDER ELDER
1. Tracking Advisory Opinion 2. Signals from the Press 3. Signals from Advertisers 4. Commitments of Futures Traders 5. Legal Insider Trading 6. Short Interest
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CMT Level I 2018 Table of Contents © 2018 CMT Association, Inc.
Chapter 35 RELATIVE STRENGTH AS A CRITERION FOR INVESTMENT SELECTION ROBERT A. LEVY
1. Construction of the Data File 2. Relative Strength Continuation: Empirical Results 3. The Effect of Stock Price Volatility 4. Market Ranks: A First Attempt at Timing 5. Divergence Ranks: A Second Attempt at Timing 6. Limitations
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CMT Level I 2018 Table of Contents © 2018 CMT Association, Inc.
CMT Level I 2018 Table of Contents © 2018 CMT Association, Inc.
