If you haven’t had a chance to read our post on the Beginners module of NCFM, you can find it at the link below. It provides an overview of NCFM and shares real-life experiences with NCFM’s beginners certification:
Technical Analysis module of NCFM
In this post, I’d like to share another experience, this time about the ‘Technical Analysis’ module of NCFM. This module is one of the most crucial components of NCFM, offering comprehensive knowledge in technical analysis. If you’re serious about learning technical analysis or want to assess your knowledge in this subject, this module is the ideal choice. The exam evaluates your understanding of Dow theory, candlestick charting, chart patterns, major technical indicators, Elliot wave theory, and risk management during trading. In short, it covers everything you need to know about technical analysis from a beginner’s perspective. However, please note that this subject is vast, and passing this exam won’t make you a professional.
The study material, as usual, is comprehensive and presented in an easy-to-understand language. It covers every topic in the syllabus thoroughly with practical examples. Going through the study material should be sufficient to pass the examination. The only prerequisite for taking this examination is basic knowledge of financial markets. We recommend completing the Beginners module before attempting this one. Don’t overlook the multiple-choice questions at the end of each chapter; they provide valuable practice.
If you’re an absolute beginner in technical analysis, it’s ideal to allocate 4 weeks for exam preparation. However, if you already have some knowledge in this area, you can probably complete it within 2 weeks. Many questions are directly taken from the MCQs at the end of each chapter, or they are slight variations. Approximately 20% of the questions relate to visualizing candlestick patterns, so make sure you are well-prepared in this area. Theoretical questions mostly cover topics like Dow theory and Elliot wave theory. Questions on chart analysis can be trickier compared to others. Please note that this exam won’t be as straightforward as the beginner’s module, so be prepared to devote significant time to passing it. In total, there are 60 questions with a total of 100 marks. The passing percentage is 60%, and incorrect answers will result in negative marks. Therefore, avoid attempting questions you’re not comfortable with. The total duration of the exam is 120 minutes, which is appropriate.
I took the exam after 3 weeks of preparation and was able to answer most questions. Overall, this module is highly beneficial and significantly contributed to my technical analysis skills. I achieved a final score of 80%. Below is a snapshot of the certificate I received:
Best of luck with your exam! If you have any questions, feel free to ask.