I hope you have read our post about Beginners module of NCFM. If not please find it in the below link. It contains overview about NCFM and real life examination experience of NCFM’s beginners certification.
Through this post, I want to share yet another experience about the ‘Technical Analysis’ module of NCFM. It is one of the most important modules of NCFM and contains in-depth comprehensive knowledge on Technical analysis. If you are serious about learning technical analysis, or want to evaluate your knowledge on the subject then this is the perfect module to go for. This exam would be an evaluation of your knowledge on Dow theory, candlestick charting, chart patterns and major technical indicators. It also revolves around Elliot wave theory and risk management during trading. In short, it contains everything to you want to learn about technical analysis from beginner’s perspective. However this subject is as vast as an ocean and you cannot expect to be a professional just by passing this examination.
The study material as usual is very comprehensive and written in a very easy language to understand. Every topic in the syllabus is covered properly with good examples. I feel it’s enough to go through the study material for passing the examination. The only pre-requisite for appearing this examination is the basic knowledge of financial markets. We recommend appearing for Beginners module before going for this. There are multiple choice questions at the end of every chapter which shouldn’t be overlooked.
The ideal preparation time for this exam is 4 weeks if you are an absolute beginner in Technical analysis. But if you already know about this subject, you can probably complete it within 2 weeks. Most of the questions are directly borrowed from the MCQ’s at the end of each chapter, or they are slight variation of those. There are around 20% questions around visualization of candlestick patterns. So you should be well prepared in this topic. Theoretical questions were mostly asked from topics like Dow theory and Elliot wave theory. Questions on chart analysis were tricky as compared to others. Please note that this exam wouldn’t be as straightforward as the beginners module. You would need to devote significant preparation time to pass this. In total, there were 60 questions carrying 100 marks. The passing percentage is 60%. Incorrect answers will cost you negative marks. So you shouldn’t attempt the questions which you are not comfortable answering. The total duration of exam is 120 minutes which is apt.
I appeared for this exam after preparation of 3 weeks, and was able to answer most of the questions. Overall this module is very useful and it helped me a lot to develop technical analysis skillset. My final score was 80%. Below is the snapshot of the certificate I received.
All the best for your exam. Feel free to post your queries.