19506 - Technical Analysis Laboratory

Learning outcomes

At the end of the course the student knows the basic tools to represent financial series, interpret tables and graphs and define trading strategies based on the construction of (simplified) evolutionary scenarios of financial markets. In particular, the student is able to: - use tables and graphs in the synthetic representation of financial phenomena (and in their reading); - build statistical indices and indicators to summarize the dynamics of prices and yields of a financial asset or portfolio; - use graphic representations to define trading strategies (according to the basic principles of technical analysis); - use dedicated software and / or spreadsheets, to simulate and evaluate the results of trading strategies.

Course contents

The basics of technical analysis (part 1)

1. Types of charts.

2. The trend.

3. Dow analysis.

4. Moving averages.

5. Momentum indicators.

6. Money management.

7. Trading systems

Psychology in trading (part 2)

1. Emotional errors in trading.

2. Japanese candlesticks.

3. Support and resistance.

4. Reversal patterns.

5. Gap formation.

6. Price volumes.

7. Alternative analyses.

8. Stop loss.

Readings/Bibliography

Analisi Tecnica dei mercati finanziari - J.J. Murphy - Hoeply

Analisi Tecnica dei mercati finanziari - M. Pring - McGraw Hill

Teaching methods

Lectures with the use of the technical analysis software - Visual Trader - for which students will be given the opportunity to receive a free version from Trader Link for a trial period of six months.

Assessment methods

Written test. The student will have to comment on two graphs and make an operational analysis based on their intuitions and forecasts.

Teaching tools

For each lesson some supporting material will be given which may be sufficient for those who do not consider it necessary to purchase the book.

Office hours

See the website of Michele Clementi