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 including 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: hcpoon@ouhk.edu.hk
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












































































































































































































































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