FIN B377F Technical Analysis in Financial Markets Course Document 2020 Autumn Term Contents Introduction 1 Aims 1 Learning outcomes 1 Content 1 Alignment of outcomes and content 1 Teaching and learning strategies 2 Assessment 2 Required textbook 3 Teaching staff 3 Teaching schedule 4 1 Introduction FIN B377F Technical Analysis in Financial Markets is a one-semester, five-credit higher level course. This subject emphasizes on both theoretical and practical aspects of technical analysis in financial markets. Aims This course aims to provide students with both theoretical and hands-on knowledge of technical analysis in financial markets. It assists students to develop their knowledge to analyse financial data by applying major technical analysis techniques. Through the construction, interpretation and application of historical prices, trading volume and other related data, it enables students to identify the trend and detect changes in price movement for making investment decision in a variety of financial markets. Learning outcomes Upon completion of this course, students should be able to: 1. Discuss the role and principles of technical analysis. 2. Critically evaluate different technical techniques for determining the trend and/or turning-point of the price to make an appropriate investment decision. 3. Formulate appropriate trading rules and strategies based on technical analysis and trend forecasting for investing in different financial markets. Content Topics Contact hours 1. Background to Technical Analysis 4 2. Dow Theory 4 3. Chart Construction 4 4. Trend Analysis 4 5. Chart Pattern Analysis 8 6. Technical Indicators 8 7. Elliott Wave Theory 8 8. Trading Strategies Formulation 8 TOTAL: 48 Alignment of outcomes and content The outcomes are related to the above topics as follows: Outcome Topic Outcome 1 Topics 1 to 3 2 Outcome 2 Topics 4 to 7 Outcome 3 Topic 8 Teaching and learning strategies Lectures, tutorials, group presentations and the use of multi-media materials are the main means employed in the course to help students achieve the learning outcomes. Lectures serve the purpose of introducing the main technical analysis concepts and theories with Hong Kong and international financial markets examples. Students are required to apply the knowledge learned in lectures to case studies in tutorial classes, during which group discussions and follow-up presentations are required. Students are therefore able to enhance their understanding of course concepts and develop their skills in constructing, interpreting and applying charting techniques to real-life financial markets. Students can also access the Online Learning Environment (OLE) which contains handouts, PowerPoint and other relevant resources as appropriate. The online Discussion Board offers an additional means for students to communicate with their course lecturers, tutors and peers. Alternatively, students can submit their study problems and questions to their lecturer/tutors through email. Assessment Course assessment components in
cluding continuous assessment and examination are as follows: Continuous assessment: 50% (3 quizzes, 1 assignment and class participation) Examination: 50% (final examination) Quiz (weighting 20%) There are 3 in-class quizzes in which students are required to review the theories and issues discussed in lectures and tutorials during the semester in a diligent and thorough manner. This assignment is used mainly to assess outcomes 1 and 2. Class Participation (weighting 10%) To help the students to achieve those learning outcomes, different learning activities will be arranged in class. Marks will be given to students who attend the lectures and tutorials. Assignment (weighting 20%) This is a group-based project in which students are required to form groups and work on assigned topics. In the end, each group is required to present their findings and submit a written report. This assignment intends to develop students’ aptitude and ability to interpret and apply technical analysis and charting techniques in the financial markets. This assignment is used mainly to assess outcomes 2 to 3. 3 Examination (weighting 50%) This is a two-hour examination and students are required to synthesise and demonstrate what they have achieved in learning outcomes 1 to 3. The pass mark for each assignment is 40. To pass this course, students must pass both the continuous assessment and the examination. Assignment Submission As a mechanism to maintain academic integrity, students are required to submit the soft copy of their assignments as below: i. Submission of soft copy Students should upload a soft copy of the assignment to the OLE of the course by 5:00 pm on the submission due date. Files uploaded to the OLE should be prepared in Microsoft Word. Please refer to the quick start guide for submission of assignments to Turnitin. You do not have to submit a hard copy of your assignment. If circumstances arise making it necessary to adjust the arrangement, further announcement will be made as soon as possible. ii. 10% of the marks awarded to the assignment will be deducted for each calendar day overdue until the soft copy of the assignment is submitted. Required textbook One set textbook is as below: Mark Andrew Lim (2016), The Handbook of Technical Analysis: The Practitioner’s Comprehensive Guide to Technical Analysis (1st edition), John Wiley. Teaching staff Lecturer & Tutor: Mr. Arnold POON Office: Block A, 8/F Tel: 2768 6998 Email: [email protected] Consultation hours: Monday 15:00 – 17:00 Tuesday 15:00 – 17:00 4 Teaching schedule Teaching Week Topics Assignments and due dates 2 Background to Technical Analysis 3 Dow Theory 4 Chart Construction 5 Trend Analysis 6 Chart Pattern Analysis Quiz 1 7 Chart Pattern Analysis 8 Study Break 9 Technical Indicators 10 Technical Indicators Quiz 2 11 Elliott Wave Theory 12 Elliott Wave Theory 13 Trading Strategies Formulation Assignment 23 Dec 2020 14 Trading Strategies Formulation Quiz 3 15 Revision