Investment Theory and Practice in Global Currency Markets
This course prepares students to effectively analyze, assess, and trade foreign currency in the FOREX spot market. Topics presented during the course include: models of success and historical evidence on buying and selling patterns, how to understand volatility of return on the foreign currency exchange, the price behavior of currency, and technical tools for analysis including Japanese Candlesticks and Fibonacci numbers. Sound equity management will be reinforced throughout the course. Students will learn how to determine market movements through the correct use of various interpretive and analytical exercises including the interpretation of support and resistance levels, currency trend analysis on short and long term time frames, and the use of various technical indicators such as Fibonacci numbers. Students will also explore and use the various trading platforms in use on the spot market today and will complete a project in which they will maintain and trade a practice account over the length of this course and track their performance, trading behaviors, and motivating factors behind their trading actions. Based on multiple technical and fundamental trading strategies, students will develop a quality, personalized trading methodology that is rooted in the practicalities of our times.
Course Objectives :
Upon successful completion of the course, the student will be able to:
- Understand the international currency markets, currency pairs, how foreign currency trades, the global trading centers, and the global trading day.
- Identify and execute technical trading strategies based on the formation of various Japanese candlestick formations.
- Interpret the meaning of economic and technical indicators on multiple timeframes.
- Calculate the levels of support and resistance in a currency pair to manage risk and maximize profit.
- Assess and implement effective equity management strategies.
- Interpret currency and economic trends that impact price and effectively draw trend lines and counter trend lines on a chart.
- Understand buy and sell zones for sound equity management and to maximize profit.
- Identify currency accumulation, consolidation, and sideways movement as risk and identifying opportunities.
- Understand the significance of Fibonacci numbers and apply those numbers in a trading strategy.
- Understand the Alphabetic boundaries of a currency and their movements in currency valuation over time to assist in predicting price movements.
- Execute trades utilizing technical analysis with Japanese candlestick formations, Alphabetics, the Up-Down Gartley strategy, Fibonacci numbers, Pennant formations, the King's Crown, and harmonic beat trading strategies.
|Week / Topic||Assignments & Assessments|
|Week1: Intro to FOREX||Read Ch. 1-2; Review Online Lecture & Workbook Ch. 1, Participate in Forum, Essay, and Quiz|
|Week 2: Trading Japanese Candlesticks||Read Ch. 4, Review Online Lecture & Workbook Ch. 2, Participate in Forum, and Complete Quiz|
|Week3: Time Frames and Indicators||Read Ch. 3; Review Online Lecture & Workbook Ch. 3, Participate in Forum and Complete Quiz|
|Week 4: Support and Resistance||Read Ch. 5, Review Online Lecture & Workbook Ch. 4, Participate in Forum, and Complete Quiz|
|Week 5: Equity Management||Read Ch. 12, Review Online Lecture & Workbook Ch. 5, Participate in Forum, Essay, and Complete Quiz|
|Week 6: Trend Lines & Trading Trends||Read Ch. 6, Review Online Lecture & Workbook Ch. 6, Participate in Forum, and Complete Quiz|
|Week 7: Buy and Sell Zones||Read Ch. 7, Review Online Lecture & Workbook Ch. 7, Trade Journal Submission, Participate in Forum, and complete Quiz|
|Week 8: Trading Consolidation||Read Ch. 11, Review Online Lecture & Workbook Ch. 8, Trade Journal Submission, Participate in Forum, Complete Quiz, and Midterm Exam|
|Week 9: Fibonacci Numbers||Review Ch. 8-9, Review Online Lecture & Workbook Ch 9, Trade Journal Submission, Participate in Forum, Complete Quiz.|
|Week 10: Fibonacci Convergences||Review Online Lecture & Workbook Ch 11, Trade Journal Submission, Participate in Forum, Complete Quiz.|
|Week 11: Trading the Gartley||Read Ch. 10, Review Online Lecture & Workbook Ch 11, Trade Journal Submission, Participate in Forum, Complete Quiz.|
|Week 12: Trading Pennants||Review Online Lecture & Workbook Ch 12, Trade Journal Submission, Participate in Forum, Complete Quiz.|
|Week 13: Trading Harmonic Vibrations||Review Online Lecture & Workbook Ch 13, Trade Journal Submission, Participate in Forum, Complete Quiz.|
|Week 14: The Reversal or King's Crown||Read Ch. 13, Review Online Lecture & Workbook Ch 14, Trade Journal Submission, Participate in Forum, Complete Quiz.|
|Week 15: Analyzing the Market||Review Online Lecture & Workbook Ch 15, Trade Journal Submission, Submit Essay, Present Trader Portfolio, Participate in Forum, Complete Quiz.|
|Week 16: Final Review & Final Exam||Take the Final Exam|
Description of Assignments
- Quizzes: Each quiz is worth 10 points. You are allowed one attempt only, and a time limit is imposed. For each chapter you will take a reading quiz. These quizzes are designed to encourage you to read and take notes on material in your text book and workbook. Academic integrity policies will be strictly enforced. You have 20 minutes to complete each quiz.
- Discussion Forums : After establishing your web access and e-mail information, every student will then be ready to participate in our weekly online discussions. This forum requires every student to respond directly to that week's discussion topics. Also, by responding to colleague's responses, information sharing will help everyone learn more from varying views and perspectives. Each "online discussion" is worth 10 points. All topic specific responses are expected to stay on point and encouraged to promote meaningful thought for course value.
- Trade Journals: Student entries are to contain: commentary, observations, and opinions specifically related to that week's trading assignment and experience. Feedback is essential and advances every student's progress as they gain and learn valuable trading experience. A common trade journal entry example might include: "I captured 20 pips today on my demo account. The Euro/USD currency pair was a very good choice and positive trading experience for me because..." Each Trade Journal is worth 10 points each and there are 9 in total from weeks 7-15.
- Personal Essays: There will be 3 "essays" worth 20 points each. These essays are broken out over weeks 1, 5, and 15 and are designed to let each student develop and produce a written narrative at each stage of that period's learning experience. Details are provided in the E-Trader Companion website.
- Midterm Exam: During week 8 there will be an online exam that will cover "workbook lessons" 1-8 and "textbook lessons" 1, 2, 3, 4, 5, 6, 7-11, & 12. The exam covers all material from the first half of the course. For the midterm exam every student will have 2 hours to complete the assignment. The exam will consist of 100, true/false and multiple choice questions similar to those found in the weekly quizzes. The midterm exam is worth 100 points.
- Trader Portfolio: This portfolio, which is worth 50 points, is a collection of student work showcasing new competencies learned over the entire course. It serves to demonstrate your understanding in executing important trading strategies in technical analysis, as well as understanding many of the key learning objectives of the course. The portfolio will contain things such as drawing support and resistance levels, identifying A-B-C-D boundaries, using the Fibonacci tools, your completion and analysis of round trip trades, and identifying the Kings Crown. Specific details of how the portfolio will be presented and the specific details to be included will be provided by the instructor inside the E-Trader Companion portal.
- Final Exam: During week 16 there will be a comprehensive online Final Exam. This Final Exam will cover all chapters 1-13 and workbook chapter 1-15 in their entirety. The Final Exam will consist of 100 true/false and multiple choice questions similar to the weekly quizzes. Every student will have 2 hours to complete this assignment. The Final exam is worth 100 points.