Buckling Down for Exam Day

With a little over one month left to go before exam day, now is an excellent time to take stock. Spring is beginning, many have recently or will soon be celebrating holidays and religious ceremonies, and winter is quickly fading behind us (I guess that would be summer for those of you in the southern hemisphere). Now is the time to get serious!

 

Books on Technical Analysis suggested by the MTA

 

Hopefully you have been able to make some time every week to devote to studying Technical Analysis and covering the assigned reading proposed by the Market Technicians Association. Knowing what you have covered, and what you still have to cover, is an essential part of the preparation process. The number of books and amount of total pages can be daunting. Hopefully you have been using our Reading Plan to guide your studies by topic (rather than book-to-book) – though we know some of you still prefer or find it more convenient to read one book at a time.

 

An excellent way to measure your progress and simultaneously plan for the future is to calculate the number of pages you have read versus the number you have left to read. This way you can alter your reading schedule to fit into your new time frame. For example, if you are behind by 250 pages, and you have 25 days until your review date begins, you know you will need to read on average 10 additional pages each day in order to meet your review date deadline.

 

It is important to leave time to review before the actual exam. You definitely do not want to be finishing up the last page of your assigned reading the night before the exam. A good amount of time to review is two to three weeks, however, if you spend a lot of time reviewing in the final week before your exam you can achieve the same effect in the short-term. For longer-term retention, a firmer grasp and deeper knowledge of the concepts covered, a less hurried and more relaxed review session is highly recommended by Market Tech Lab. However, if you do not have the time for this, all is not lost. You will have an additional opportunity to brush up on concepts covered in the Level 1 exam when you are preparing for your Level 2 exam.

 

Stay curious. Stay technically inclined. Remember, Technical Analysis is a study of probabilities and market history, and many have been in your shoes before you. Keep reading!

 

Chartered Market Technician Level 1 Study Guide – Coming Soon!

Market Tech Lab is pleased to announced that a Level 1 Study Guide for the Chartered Market Technician Exam will be available in time for the Spring 2013 CMT Exams. The level 1 exam will take place on May 5th, 2013. If you would like to express interest in pre-ordering your copy at a discount, or requesting to be notified when our guide becomes available, please email “info” at markettechlab.com or use our contact page to get in touch with us. We are excited to hear from you and welcome suggestions as we complete the guide to suit your needs. We hope it will be a “technical home-run” and vastly improve candidates’ comprehension while reducing overall study time.

 

New CMT Level 1 Study Guide -- Coming soon!

New CMT Level 1 Study Guide — Coming soon!

 

In the meantime, be sure to check out our free resources and Level 1 Practice Exams that are available immediately. As always, thank you for visiting and supporting Market Tech Lab for Market Technicians. Tech on!

Congratulations to the Market Technicians Association

Market Tech Lab would like to congratulate the Market Technicians Association on 40 brilliant years of Technical Analysis! For 40 years, the MTA has provided Technical Analysis promotion, support, and advancement for its members. The MTA will be holding a 40th Anniversary Gala in NYC on April 4-5, 2013 at the Broad Street Ballroom. The event is a black tie optional affair, and will feature cocktails, dinner, and notable technicians present.

 

For a brief history of the MTA, please check out this great link: History of the Market Technicians Association.

 

For an announcement from one of the founding fathers of the MTA, please click here: http://news.mta.org/2013/technical-analysis/mta-40th-anniversary-thoughts-from-a-founding-father-of-the-mta/

 

Mark your calendars – the time to register is now! For registration ($200 to $250), please click here: http://www.mta.org/eweb/dynamicpage.aspx?webcode=shoppingcart-events.

 

We hope to see you there!

 

-The Market Tech Lab Team

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Welcome Back

Dear candidates of the CMT Exams,

 

We are pleased to announce Market Tech Lab has completed its renovation and is back from construction! You’ll be glad to find out that we now have a whole new system of delivering incredible value to clients. You may now purchase any of Market Tech Lab’s original study content and get your access delivered INSTANTLY. This is a vast improvement over our old system which could take up to 12 hours for full processing. You can also access the content from ANY iPad or ANY computer with an internet connection. We have also introduced two new product support features we are very excited about.

 

Members Area

 

Market Tech Lab’s new Members Area grants clients access to our products and grants new users access to our free resources. Our free resources currently include two practice quizzes and the CMT Level 1 Reading Schedule. The Reading Schedule details plans for candidates to follow that break out and organize the readings in a logical, orderly manner. The schedule helps break redundancy, increases comprehension, and motivates with its fluidity. If you only use one of our products — it should be our Reading Schedule. Your notes will be organized, concrete, and chronological. You will be amazed at how much easier the readings seem to fly by when you follow our Reading Schedule, even though you are reading the same pages on the MTA’s recommended reading list (even a few more, actually). Additionally, included with the reading plan are Learning Outcome Statements that will help you measure what you’ve learned and know if you’ve successfully digested what you’ve read.

 

Product Trial

 

While we have always stood by our products with a 100% Satisfaction Guarantee, we now are able to offer users a trial period whereby they may evaluate the product to make sure they are 100% satisfied. If our clients are not satisfied we will refund their purchase, no questions asked. We believe in our products and stand by them. We also believe that excellent customer service is equally as important as the product. We are committed to improving the lives and knowledge of candidates, not causing more stress and anxiety. We know the exams are enough to deal with on their own.

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Higher Score Guarantee

 

Market Tech Lab now offers a Higher Score Guarantee. This applies to anyone who took the exams and either failed or wants to take the same level twice. We will guarantee our clients score higher their second time around using Market Tech Lab’s products, or their money back in full. You may find details about how to apply for the Higher Score Guarantee here.

 

As always, thank you for visiting Market Tech Lab for Market Technicians! With your support, we hope to continue delivering value and assisting candidates around the world as we grow with Technical Analysis.

 

Calculating Broken Trendline Price Projections

One of the benefits of technical analysis is the ability for technicians to project price. This enables us to know the likely extent of a move once a pattern has completed, or in this case, once a trendline has been broken. Today we’re going to cover the method for calculating a price projection from a broken trendline.

 

The calculation is rather simple. You must start with the required characteristics of trend to begin. You must be analyzing a stock that was in a confirmed uptrend (at least two touches, but three or more is best) that is broad enough in its range to analyze. If the price bounces along the line without rallying a significant distance off of the line, this method will not work. It is best to see a trend channel with a wide range of that channel, as narrow ranges will not work. Again this is subjective, so use your best judgment, and you will see why this is important. And of course, the trend must actually have been broken to realize a projection.

 

Below is a recent daily chart of BAC with a broken trendline. You can see it has a range of a couple dollars, which is more than 20% on a relative basis, and is sufficient for analysis.

 

 

Below are the steps required to calculate:

 

1.)  Determine the high of the move. In this case it is $10.

2.)  Next, draw or eyeball a straight line immediately down from the high through the air pocket to the bottom trendline.

3.)  From this intersection look right to determine the price level along the Y-axis, then subtract the distance. In this case, $10 – $8.50 gives $1.50

4.)  Subjtract the projection from where the breakout occurs. Note it is where the breakout actually occurs ($9.25), not from the intersection ($8.50)

5.)  This gives a minimum projection of $7.75. While there is no “maximum” projection, a good rule of thumb is to use 1-2 times the price calculation for your projection. In this case $7.75 to $6.25 (2 times $1.50 from $9.25).

 

 

This can be done for any length of trend, but will be more effective for longer-term trends. This can be a useful technique to determine where to exit positions in the direction of the broken trend, or when to become alerted to re-entry below/above the price target.

 

 

Note: This information is covered in Martin Pring’s book, Technical Analysis Explained.

Site Update

Thank you for visiting Market Tech Lab, CMT Test Preparation by Technicians for Technicians. We hope you enjoy your stay and we’d like to welcome you to the new and improved site. Browse around and feel free to drop us some feedback, we always enjoy hearing from candidates on new ideas or suggested improvements. We offer affordable test prep solutions and also hope to provide additional free resources soon. We will be bringing you new study content and updated technology to assist in your studies as well.

 

Raging Bull of Wall St.

Please follow us on Twitter for exclusive deals and sign up for our newsletter while you’re at it. You will receive tailored study tips and exclusive content. Welcome to an exciting time both in the financial markets and for CMT Charter holders alike. The world has never looked so bright as it does now. Thank you for visiting and we hope to hear from you as you begin or continue your journey to become a chartered market technician. Thank you and have a wonderful week.

 

- The Market Tech Lab Team