Forum Archive Index - July 2001

[Phaedrus <Phaedrus@techemail.com>]

The following is a possible agenda for anyone wanting to learn about Technical 
Analysis. It is not suggested that you need to do everything here in order to 
use TA effectively. Take it as far as you wish. Where applicable, some 
approximate indication of cost is given.
What is Technical Analysis, and why use it?   http://www.ataa.com.au/a_cn_ta.htm
An Introduction to basic Technical Analysis :- 
http://wol.sharenet.co.za/free/library/technica.htm?scheme=wol 
The book "Technical Analysis from A to Z" by Steven Achelis has a good 
introductory overview, followed by information on most of the commonly used 
indicators :- http://www.equis.com/free/taaz/inttechnicalanalysis.html
Examine some charts on-line, practice drawing trendlines, see if you can 
recognise support and resistance levels. Try some of the indicators available. 
Look at Bar charts, Line charts and Japanese Candlesticks. There are many sites 
available eg :-
http://www.equis.com/java/  USA only
http://www.bigcharts.com    A good site, USA only. Can be very slow.
http://investor.stockpoint.com/quote.asp   All but NZ. Slow.
Buy "Technical Analysis of the Financial Markets" by John Murphy. ISBN 
0-7352-0066-1  $140. This 540 page book covers most of the major facets of 
technical analysis, making it a good introductory text. This is one of the 
three books required for the American Chartered Market Technician Program. (The 
other two are "Technical Analysis of Stock Trends" by Edwards and Magee, and 
"Technical Analysis Explained" by Martin Pring.)
Find a website with good charting facilities, covering the exchange(s) you are 
interested in. 
http://www.prophetfinance.com/forms/default.asp?returnpath=%2FDefault%2Easp&pagequery=
  is good, but the NZ data does not have opening prices, precluding the use of 
Candlesticks. Most USA online brokers provide good charting functionality, 
free.  For some people, this is all they will ever require. 
Buy a charting program. There are hundreds available, ranging in price from 
free to well over $10,000. It is possible to spend an inordinate amount of time 
trying to find something reasonably acceptable for little or no outlay. If you 
can afford it, go straight to buying a well-known program of good quality such 
as :- 
          MetaStock   $1050    http://www.infoscan.co.nz/
          Supercharts  $1050   http://www.infoscan.co.nz/
          Ezy Chart Pro $800   http://www.paritech.com.au/
          Insight Trader $750  http://www.insighttrading.com.au/
This is not a comprehensive list. My personal preference is for MetaStock, but 
there are other good programs available. In New Zealand, more people use 
MetaStock than all the others put together. 
For a listing of well over 400 Technical Analysis software programs, with 
details of each, go to :- 
http://technical.traders.com/Products/catsearch.asp?cat=120  This site includes 
a search engine, which enables you to enter the features you require, then 
gives a listing of software programs meeting those criteria.     
If you must have something cheaper, try the following sites :-
http://freeware.intrastar.net/techasis.htm 
http://www.stock-investing-software.com/freesoftware2.html
http://office.tucows.com/invest95.html
http://dmoz.org/Computers/Software/Business/Investing/Charting_and_Technical_Analysis/
 
You will need a supply of compatible data, and some price history. (2 years 
minimum. 5-10 years would be better)  Package deals are available eg MetaStock, 
plus one years subs to NZ data and Australian data plus 8 years NZ history plus 
5 years Australian history, $1,550   http://www.infoscan.co.nz/infob.html   
Shop around though - prices can vary considerably,
Don't even think of looking at any high-priced "black box" systems. Why not? 
Read these two excellent articles :-
http://www.stanz.co.nz/education.htm#articles  
http://www.ataa.com.au/a_cn_comp_trd_.htm
Join STANZ (Society of Technical Analysts of New Zealand) $50 pa. They hold 
monthly meetings, see their website for details. You do not have to be a member 
to attend. (Members $5, non-members $10) http://www.stanz.co.nz/
Read some books from the following titles as listed on the IFTA website 
(International Federation of Technical Analysts):- 
http://www.ifta.org/Resources/RecommendedBooks.htm
Join ATAA (Australian Technical Analysts Association) $180 pa. They have 
monthly meetings (in Australia) and publish a very good bi-monthly journal 
containing articles on technical analysis and trading. http://www.ataa.com.au/
Study for the ATAA Diploma in Technical Analysis. $1500.  This is a two 
semester course, run by the Securities Institute of Australia. It is available 
by distance education (correspondence course) Full information at 
http://www.ataa.com.au/ataa_courses.htm
The Chartered Market Technician (CMT) Program is an educational process in 
which candidates study a broad range of technical analysis subjects. 
Administered by the Accreditation Committee of the American Market Technicians 
Association (MTA), the Program consists of three levels which must be completed 
within 5 years. Further information :- http://www.mta.org/pdf/cmtbroch2001.pdf
Britain has some more complex courses with degree examinations and Universities 
in USA, Europe and Sweden also provide for a degree in Technical Analysis. 
Get TradeStation software $6000+  This is probably the best software of all for 
creating and backtesting systems. The programming language is more powerful, 
more complex and more difficult to learn than MetaStock. TradeStation has a 
large user base in the USA, but it is not used by many traders in NZ and 
Australia. 
http://www.tradestation2000i.com/products/tradestation/feature/default.shtm
              Compiled by Phaedrus, 10/7/01.

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