Technical Analysis Module NATIONAL STOCK EXCHANGE OF INDIA LIMITED Test Details: Sr. Name of Module Fees Test Duration No. of Maximum Pass Certifi cate No. (Rs.) (in minutes) Questions Marks Marks (%) Validity 1 Financial Markets: A Beginners’ Module * 1686 120 60 100 50 5 2 Mutual Funds : A Beginners' Module 1686 120 60 100 50 5 3 Currency Derivatives: A Beginner’s Module 1686 120 60 100 50 5 4 Equity Derivatives: A Beginner’s Module 1686 120 60 100 50 5 5 Interest Rate Derivatives: A Beginner’s Module 1686 120 60 100 50 5 6 Commercial Banking in India: A Beginner’s Module 1686 120 60 100 50 5 7 Securities Market (Basic) Module 1686 120 60 100 60 5 8 Capital Market (Dealers) Module * 1686 105 60 100 50 5 9 Derivatives Market (Dealers) Module * [Please refer to footnote no. (i) ] 1686 120 60 100 60 3 10 FIMMDA-NSE Debt Market (Basic) Module 1686 120 60 100 60 5 11 Investment Analysis and Portfolio Management Module 1686 120 60 100 60 5 12 Fundamental Analysis Module 1686 120 60 100 60 5 13 Financial Markets (Advanced) Module 1686 120 60 100 60 5 14 Securities Markets (Advanced) Module 1686 120 60 100 60 5 15 Mutual Funds (Advanced) Module 1686 120 60 100 60 5 16 Banking Sector Module 1686 120 60 100 60 5 17 Insurance Module 1686 120 60 100 60 5 18 Macroeconomics for Financial Markets Module 1686 120 60 100 60 5 19 Mergers and Acquisitions Module 1686 120 60 100 60 5 20 Back Offi ce Operations Module 1686 120 60 100 60 5 21 Wealth Management Module 1686 120 60 100 60 5 22 NISM-Series-I: Currency Derivatives Certifi cation Examination 1000 120 100 100 60 3 23 NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents – 1000 120 100 100 50 3 Corporate Certifi cation Examination 24 NISM-Series-II-B: Registrars to an Issue and Share Transfer Agents – 1000 120 100 100 50 3 Mutual Fund Certifi cation Examination 25 NISM-Series-IV: Interest Rate Derivatives Certifi cation Examination 1000 120 100 100 60 3 26 NISM-Series-V-A: Mutual Fund Distributors Certifi cation Examination * 1000 120 100 100 50 3 27 NISM-Series-VI: Depository Operations Certifi cation Examination 1000 120 100 100 60 3 28 NISM Series VII: Securities Operations and Risk Management 1000 120 100 100 50 3 Certifi cation Examination 29 NISM-Series-VIII: Equity Derivatives Certifi cation Examination 1000 120 100 100 60 3 30 Certifi ed Personal Financial Advisor (CPFA) Examination 4495 120 80 100 60 3 31 NSDL–Depository Operations Module 1686 75 60 100 60 # 5 32 Commodities Market Module 2022 120 60 100 50 3 33 Surveillance in Stock Exchanges Module 1686 120 50 100 60 5 34 Corporate Governance Module 1686 90 100 100 60 5 35 Compliance Offi cers (Brokers) Module 1686 120 60 100 60 5 36 Compliance Offi cers (Corporates) Module 1686 120 60 100 60 5 37 Information Security Auditors Module (Part-1) 2528 120 90 100 60 2 Information Security Auditors Module (Part-2) 2528 120 90 100 60 38 Options Trading Strategies Module 1686 120 60 100 60 5 39 Options Trading (Advanced) Module 1686 120 35 100 60 5 2247 per 40 FPSB India Exam 1 to 4** 120 75 140 60 NA exam 41 Examination 5/Advanced Financial Planning ** 5618 240 30 100 50 NA 42 Equity Research Module ## 1686 120 65 100 55 2 43 Issue Management Module ## 1686 120 80 100 55 2 44 Market Risk Module ## 1686 120 50 100 55 2 45 Financial Modeling Module ### 1123 120 30 100 50 NA 46 Financial Services Foundation Module ### 1123 120 45 100 50 NA * Candidates have the option to take the tests in English, Gujarati or Hindi languages. # Candidates securing 80% or more marks in NSDL-Depository Operations Module ONLY will be certifi ed as ‘Trainers’. ** Following are the modules of Financial Planning Standards Board India (Certifi ed Financial Planner Certifi cation) - FPSB India Exam 1 to 4 i.e. (i) Risk Analysis & Insurance Planning (ii) Retirement Planning & Employee Benefi ts (iii) Investment Planning and (iv) Tax Planning & Estate Planning - Examination 5/Advanced Financial Planning ## Modules of Finitiatives Learning India Pvt. Ltd. (FLIP) ### Module of IMS Proschool The curriculum for each of the modules (except Modules of Financial Planning Standards Board India, Finitiatives Learning India Pvt. Ltd. and IMS Proschool) is available on our website: www.nseindia.com > Education > Certifi cations. Note: (i) NISM has specifi ed the NISM-Series-VIII-Equity Derivatives Certifi cation Examination as the requisite standard for associated persons functioning as approved users and sales personnel of the trading member of an equity derivatives exchange or equity derivative segment of a recognized stock exchange. Contents CHAPTER 1 ............................................................................................................ 9 INTRODUCTION TO TECHNICAL ANALYSIS ............................................................9 1.1 What is technical analysis? ...............................................................................9 1.1.1 Price discounts everything ....................................................................9 1.1.2 Price movements are not totally random ..............................................10 1.1.3 Technical Analysis: the basic assumption ..............................................11 1.1.4 Strengths and weakness of technical analysis .......................................12 1.1.4.1 Importance of technical analysis ............................................12 1.1.4.2 Weaknesses of technical analysis ...........................................13 CHAPTER 2 .......................................................................................................... 16 CANDLE CHARTS .................................................................................................. 16 2.1 The charts ...................................................................................................16 2.2 Candlestick analysis ......................................................................................20 2.2.1 One candle pattern ............................................................................21 2.2.1.1 Hammer ............................................................................21 2.2.1.2 Hanging man ......................................................................22 2.2.1.3 Shooting star and inverted hammer .......................................23 2.2.2 Two candle pattern ............................................................................26 2.2.2.1 Bullish engulfi ng ..................................................................26 2.2.2.2 Bearish engulfi ng ................................................................28 2.2.2.3 Piercing .............................................................................29 2.2.2.4 Bearish harami....................................................................31 2.2.2.5 Bullish harami .....................................................................33 2.2.3 Three candle pattern .........................................................................35 2.2.3.1 Evening star .......................................................................35 2.2.3.2 Morning star .......................................................................38 2.2.3.3 Doji ...................................................................................40 CHAPTER 3 .......................................................................................................... 46 PATTERN STUDY ..................................................................................................46 3.1 What are support and resistance lines? ............................................................46 3.1.1 Support ........................................................................................46 3.1.2 Resistance .......................................................................................48 3.1.3 Why do support and resistance lines occurs? .........................................49 3.1.4 Support and resistance zone ...............................................................49 3.1.5 Change of support to resistance and vice versa .....................................51 3 3.1.6 Why are support and resistance lines important? ...................................52 3.2 Head and shoulders ......................................................................................52 3.2.1 Head and shoulders top reversal .........................................................53 3.2.2 Inverted head and shoulders ..............................................................57 3.2.3 Head and shoulders bottom ................................................................58 3.3 Double top and double bottom .......................................................................62 3.3.1 Double top .......................................................................................63 3.3.2 Double bottom ..................................................................................66 3.3.3 Rounded top and bottom ....................................................................69 3.4 Gap theory ..................................................................................................70 3.4.1 Common gaps ..................................................................................71 3.4.2 Breakaway gaps................................................................................71 3.4.3 Runaway/continuation gap .................................................................72 3.4.4 Exhaustion gap .................................................................................73 3.4.5 Island cluster ...................................................................................74