Introduction ix
 
The CMT Association ix
 
The CMT Program x
 
The Level I Textbook xii
 
Section I Theory and History of Technical Analysis 1
 
Chapter 1 The Basic Principle of Technical Analysis--The Trend 3
Charles D. Kirkpatrick II and Julie R. Dahlquist
 
Chapter 2 Dow Theory 15
Charles D. Kirkpatrick II and Julie R. Dahlquist
 
Chapter 3 Introduction to Charts, Part 1 27
Julie Dahlquist, Ph.D., CMT
 
Chapter 4 Introduction to Charts, Part 2 36
Julie Dahlquist, Ph.D., CMT
 
Section II Charts, Trends, and Patterns 47
 
Chapter 5 Trends--The Basics 49
Charles D. Kirkpatrick II and Julie R. Dahlquist
 
Chapter 6 Breakouts, Stops, and Retracements 77
Charles D. Kirkpatrick II and Julie R. Dahlquist
 
Chapter 7 Moving Averages 99
Charles D. Kirkpatrick II and Julie R. Dahlquist
 
Chapter 8 Bar Chart Patterns 127
Charles D. Kirkpatrick II and Julie R. Dahlquist
 
Chapter 9 Short-Term Patterns 160
Charles D. Kirkpatrick II and Julie R. Dahlquist
 
Chapter 10 Introduction to Volume Analysis 202
Buff Dormeier, CMT
 
Chapter 11 Volume: The Technician's Decryption Device 208
Buff Dormeier, CMT
 
Chapter 12 An Introduction to Volume Indicators 215
Buff Dormeier, CMT
 
Chapter 13 Confirmation 219
Charles D. Kirkpatrick II and Julie R. Dahlquist
 
Chapter 14 Candlestick Charting Essentials 256
Steve Nison
 
Chapter 15 Point-and-Figure Charting 266
Perry J. Kaufman
 
Section III Advanced Concepts in Charting and Trend Analysis 293
 
Chapter 16 Introduction to the Wave Principle 295
Wayne Gorman, Jeffrey Kennedy, and Robert R. Prechter, Jr.
 
Chapter 17 The Anatomy of Elliott Wave Trading 313
Wayne Gorman, Jeffrey Kennedy, and Robert R. Prechter, Jr.
 
Chapter 18 Measuring Market Strength 328
Charles D. Kirkpatrick II and Julie R. Dahlquist
 
Chapter 19 Foundations of Cycle Theory 361
Kyle Crystal, CMT, CFTe
 
Chapter 20 Basics of Cycle Analysis 371
Kyle Crystal, CMT, CFTe
 
Section IV Markets and Volatility 385
 
Chapter 21 Markets, Instruments, Data, and the Technical Analyst 387
Michael Kahn, CMT
 
Chapter 22 Equities 390
Michael Kahn, CMT
 
Chapter 23 Indexes 396
Michael Kahn, CMT
 
Chapter 24 Fixed Income/Bonds 405
Michael Kahn, CMT
 
Chapter 25 Futures 414
Michael Kahn, CMT
 
Chapter 26 Exchange-Traded Products (ETPs) 421
Michael Kahn, CMT
 
Chapter 27 Foreign Exchange (Currencies) 426
Michael Kahn, CMT
 
Chapter 28 Options 431
Michael Kahn, CMT
 
Chapter 29 Understanding Implied Volatility 438
Russell Rhoads
 
Chapter 30 About the VIX Index 450
Russell Rhoads
 
Section V Behavioral Finance and Other Theories of Market Dynamics 465
 
Chapter 31 What Is the Efficient Market Hypothesis? 467
Edwin T. Burton and Sunit N. Shah
 
Chapter 32 The Forerunners to Behavioral Finance 475
Edwin T. Burton and Sunit N. Shah
 
Chapter 33 Noise Traders and the Law of One Price 480
Edwin T. Burton and Sunit N. Shah
 
Chapter 34 Noise Traders as Technical Traders 488
Edwin T. Burton and Sunit N. Shah
 
Chapter 35 Academic Approaches to Technical Analysis 498
Andrew W. Lo and Jasmina Hasanhodzic
 
Chapter 36 Market Sentiment and Technical Analysis 513
Michael Carr, CMT, CFTe
 
Chapter 37 Sentiment Measures from Market Data 517
Michael Carr, CMT, CFTe
 
Chapter 38 Sentiment Measures from External Data 526
Michael Carr, CMT, CFTe
 
Section VI Basic Statistics for the Technical Analyst 535
 
Chapter 39 Introduction to Descri
Get Your Copy of the 2023 Official CMT(r) Level I Curriculum
 
As the authoritative introduction to the basics of technical analysis, the Official CMT(r) Level I Curriculum includes the tools, content, and terminology you will need to prepare for the Level I exam and beyond. Published in partnership with the CMT Association, CMT Curriculum Level I 2023: An Introduction to Technical Analysis explores theory and history, markets, market indicators, construction, confirmation, cycles, selection and decision, system testing, and statistical analysis.
 
This text covers all concepts appearing on the Level I CMT(r) exam, featuring industry-relevant topics and treatments of technical analysis in the context of portfolio management.
The CMT Association has worked to advance the discipline of technical analysis for nearly 50 years. What started as a small group of sell-side analysts on Wall Street is now a global association with members in 137 countries. CMT Association strives to establish and maintain the highest professional standards among technical analysts with diverse opportunities in continuing education, ethics awareness, and networking.