IFTAUPDATE 2017 Volume 24 Issue 2

page 12017 Volume 24 Issue 2

a newsletter for the colleagues of the International Federation of Technical Analysts

IN THIS ISSUE

President’s Report to Colleagues

1

President’s Report to Colleagues

3 Calendar-at-a-Glance
4 Congratulations New CFTes!
4 MFTA and CFTe Exam Dates
5 Member News
5 Congratulations New MFTA
Education Lounge

6 Beyond Technical Analysis
15 Sell in May and Go Away?
17 2016 Bronwen Wood Award Winner
18 2016 John Brooks Memorial Award
Winner19 IFTA Board of Directors NominationForm
20 IFTA Member Societies
20 IFTA Update Schedule
20 Board of Directors

Next Issue: September 2017
Submission Deadlines
Education articles: August 15—
send submissions to newsletter@ifta.org
All other content: September 1—
send submissions to admin@ifta.org
Advertise in the UPDATE and reach morethan 6,950+ IFTA colleagues worldwide.
For more information, go to
www.ifta.org/publications/newsletter/.

Dear IFTA Colleagues,
Allow me to share with you some of the
IFTA developments over the past months:

Membership and Society
Developments

Led by the efforts of our membership director, Alek Jankowski; VP Asia Pacific, Akihiro
Niimi; and development director, Takashi
Nakamura, IFTA has granted full membership status to two societies of Malaysia andHong Kong—the Malaysian Association ofTechnical Analysts (MATA) and the Financial
Technical Analysts Association (FTAA),
respectively. Please join me in congratulating and welcoming these newest full-member societies to our IFTA family! Additionally
IFTA welcomes new developing member
Bastiat Society Ghana.

IFTA Webinars

Since the last update on our IFTA webinar program, IFTA Director Tom Hicks has
put together two more webinar sessions.
The first session, titled “High Probability
Day Trading,” was held in late March andwas presented by keynote speaker Lee
Sandford MSTA, CFTe. The second webinar, titled “Volume at Price: Not all prices
are equal!” was launched in late May andwas presented by keynote speaker Paul
McLaren, CFTe, DipTA.
If you did not get a chance to attend orview these webinars, be sure not to missour future webinars in 2017. For more information on how to register, please visit our
website: www.IFTA.org.

The IFTA UPDATE is a publication of the International
Federation of Technical Analysts, Inc. www.ifta.org, a
not-for-profit professional organization incorporated in
1986.
International Federation of Technical Analysts
9707 Key West Avenue, Suite 100
Rockville, MD 20850 USA
Email: admin@ifta.org • Phone: +1 240-404-6508

IFTA 2017

Annual General Meeting
Thursday, 12 October
16:30 – 17:30 (4:00PM – 5:30PM)
Excelsior Hotel Gallia
Piazza Duca d’Aosta, 9Milan, Italy 20124
All IFTA colleagues are encouraged andinvited to attend. For further information,
contact the IFTA staff at admin@ifta.org.

2017 IFTA Conference Update

Thanks to Conference Director Francesco
Caruso and SIAT, more exciting details
regarding the 2017 IFTA conference havebeen unravelled!
As you already know, our next conference
will be held in Milan, Italy, from October
13–15, 2017, at the Excelsior Hotel Gallia.
The conference will be hosted by Societa
Italiana di Analisi Tecnica (SIAT), and thisyear’s theme is “Sailing to the Future”.

The SIAT Conference Committee haslaunched the conference website
www.ifta-conferences.org, where you can
now register for the conference; learn
about the conference theme, venue,
and schedule; and view the list of excellent guest speakers. To name a few, thisyear’s list includes John Bollinger, Perry
Kaufman, and Robert R. Prechter!
Continued on page 4

IFTAUPDATE 2017 Volume 24 Issue 2

page 2CONFIRMED SPEAKERS:Classic And Modern
Quant - Technical Analysis
GREGOR BAUER - JOHN BOLLINGER - STEEVE BRUMENTFRANCESCO CARUSO - LUCA GIUSTI - KATHRYN M. KAMINSKI
VALENTIJN VAN NIEUWENHUIJZEN - VAN LUU - ANDREA UNGERPERRY KAUFMAN - MIYOKO NISHIMURA - MAURIZIO MAZZIEROROBERT R. PRECHTER - HANK PRUDEN - RICCARDO RONCO
EUGENIO SARTORELLI - SPYROS SKOURAS - SERGIO PAOLINODAN VALCU - ALBERTO VIVANTI - DANIEL YANNICK

Behavioral Experimental Finance
ERIC GUERCI - NOBUYUKI HANAKI - RICHARD L. PETERSON

Artificial Intelligence
ROBERTO MALNATI - TOMOYA SUZUKI - DAN VALCU

12 October - KICK OFF

13-15 October - CONFERENCE
hosted by www.siat.org

Cryptocurrency and Blockchain
FERDINANDO AMETRANO - MONA EL ISA

FIND OUT MORE

Full list of speakers available soon_____________________________________________________________The IFTA 30th Annual Conference will be held at the Excelsior
Hotel Gallia, on Friday 13 – Sunday 15 October.

If you are interested in sponsoring IFTA 2017 and for all conference
inquiries, please contact:: Ifta2017@siat.org_____________________________________________________________The title of the conference, “Sailing to the future ”, will allow
us to go beyond the usual thematic of Technical Analysis, exploring
the sea of opportunities that has been originated by a totally new“quant” generation of technologies, markets andinstruments. We will also try to go inside the vast thematic of thecontamination between our discipline and many other fields of
economics (i.e. Behavioural Finance, AI, Big Data, Cryptocurrency andBlockchain), with top institutional and academic contributions.

Online booking is now available!
Now you can purchase your tickets for the conference andthe exclusive events associated with it.
Go to the IFTA2017 website and register to the conference.
Discounted rates until August 15, 2017!
Only 300 tickets available!
CLICK HERE TO GO DIRECTLY TO ONLINE BOOKING NOW!

IFTAUPDATE 2017 Volume 24 Issue 2

page 3

Calendar-at-a-Glance
Date

Host

Speaker

Location

Time

ContactMonthly Presentations from local and international speakers on a comprehensive range of topics (e.g.,

Topic

STANZ
(New
Zealand)

Various

Epsom Community Centre
200-206 Gillies Ave.
Auckland, NZ

Varieswww.stanz.co.nz/

Monthly Meetings are held monthly in nine cities across Australia. All monthly meetings are free to

ATAA(Australia)

Various

Various

Varieswww.ataa.com.au/meetings

Monthly Chapter leaders and their volunteer members serve as ambassadors for the CSTA andCSTA
Chapters(Canada)Various

Various

Varieswww.csta.org

STA

VariesBritish Bankers Association • Pinners Hall 105 – Varies
108 Old Broad Street • London EC2N 1EX

Katie Abberton, info@sta-uk.org

sharemarket, CFDs, options, futures, FOREX trading, methodologies, money management,
psychology).

members. Visitors are welcome to attend. Bookings are not required. Visitors fee is $30.

plan social and educational events for the area. Events include presentations by industry
professionals and technical analysis experts and peer learning gatherings. Chapters also play avital role in their communities by connecting individuals and promoting technical analysis.
Monthly Meetings & Events: The STA holds monthly meetings in London, usually on the second
Tuesday of every month, except for a summer break in August.

2017

June

23

Using P/E Ratio Option Strategies to Hedge Earnings Risk

TSAASF

Dave Freitag

Golden Gate University, San Francisco, CA 16:00(Room 3214)

http://www.tsaasf.org/

29

Webinar: Ichimoku Clouds

IFTA

Nicole Elliott, MSTA

NA

19:00-20:00
BST

admin@ifta.org

4Modern Price Patterns for Trend Trading

SAMT

Viktor Pershikov, MFTA,

Volkshochschule Zürich, Bärengasse 22,8001 Zürich

18:00

www.samt-org.ch/events/

6

Modern Price Patterns for Trend Trading

SAMT

Viktor Pershikov, MFTA,

Hotel Tiffany (Salon Audrey), Rue del'Arquebuse 20, 1204 Genève

18:00

www.samt-org.ch/events/

11

Summer Party and Awards Ceremony

STA

Stephen Hoad, The Stop
HunterBritish Bankers Association, Pinners Hall,150-108 Old Broad St., London EC2N 1EX

18:00

https://www.sta-uk.org/resources/
meetings-events/

31

Master of Financial Technical Analysis (MFTA)
Alternative Path, Session 2 application deadline

IFTA

NA

NA

NA

www.ifta.org

Aug

15

IFTA Update submission deadline for educational articles (midSeptember release)

IFTA

NA

NA

Variesnewsletter@ifta.org
Attn: Aurélia Gerber, Journal Director

Sept

1

IFTA Update submission deadline for news content (mid-Sept release)

IFTA

NA

NA

NA

admin@ifta.org

Deadline to register for CFTe on 19 October

IFTA

NA

NA

All Dayadmin@ifta.org

2

Master of Financial Technical Analysis (MFTA) Session 2 application,
outline and fees deadline

IFTA

NA

NA

NA

admin@ifta.org

12

IFTA Annual General Meeting (AGM)

IFTA & SIAT Varies

16:30-17:30

admin@ifta.org; www.ifta.org

13-15

IFTA 30th Annual Conference

IFTA & SIAT Varies

Variesadmin@ifta.org; www.ifta.org

15

IFTA

NA

NA

admin@ifta.org

19

Master of Financial Technical Analysis (MFTA) Session 1 paper
submission deadline
Certified Financial Technician (CFTe) Examination

Excelsior Hotel Gallia
Piazza Duca D’Aosta 9, Milan, Italy
Excelsior Hotel Gallia
Piazza Duca D’Aosta 9, Milan, Italy
NA

IFTA

NA

VariesVariesadmin@ifta.org; www.ifta.org

20

Volume At Price

TASS

19:00-21:00

http://www.tass.org.sg/event-upcoming

1

IFTA Journal Web publication

IFTA

Paul McLaren, Managing Director, 9 Raffles Place #30-02
Enhance Your Options Pty Ltd
Republic Plasz Tower 1, Singapore
NA
NA

NA

http://www.ifta.org publications/journal/

15

NA

NA

Varies1

IFTA Update submission deadline for educational articles
IFTA(mid-December release)
IFTA Update submission deadline for news content (mid-December release) IFTA

NA

NA

Variesnewsletter@ifta.org
Attn: Aurélia Gerber, Journal Director
admin@ifta.org

1

IFTA Journal Web publication

NA

NA

NA

http://www.ifta.org publications/journal/

July

1
Oct

Nov

Dec

IFTA

Continued on page 4

IFTAUPDATE 2017 Volume 24 Issue 2

page 4

Calendar continued

2018

Feb

15
28

Mar

1

IFTA Update submission deadline for educational articles
IFTA(mid-March release)
Master of Financial Technical Analysis (MFTA) Alternative Path, Session IFTA
1 application deadline.
IFTA Update submission deadline for news content (mid-March release) IFTA

NA

NA

VariesNA

NA

NA

newsletter@ifta.org
Attn: Aurélia Gerber, Journal Director
http://www.ifta.org

NA

NA

Variesadmin@ifta.org

Certified Financial Technician (CFTe) Level II—deadline to register for
April examination
Master of Financial Technical Analysis (MFTA) Session 1 paper
submission deadline
CFTe II Examination

IFTA

NA

VariesVariesadmin@ifta.org

IFTA

NA

VariesVaries

3
15

IFTA

NA

VariesVariesadmin@ifta.org
http://www.ifta.org
admin@ifta.org http://www.ifta.org

NA

VariesVarieshttp://www.ifta.org

NA

NA

NA

admin@ifta.org

15

Certified Financial Technician (CFTe) Level II – registration opens for
IFTA
October examination through IFTA website
Master of Financial Technical Analysis (MFTA) Session 1 application,
IFTA
outline, and fees deadline
IFTA Update submission deadline for educational articles (mid-June release) IFTA

NA

NA

Variesnewsletter@ifta.org Attn: Aurélia Gerber

31

IFTA Journal Call for Papers submissions deadline

NA

NA

NA

journal@ifta.org

April

TBD

May

1
2

President's Report continued
I look forward to meeting many of you atthe 30th Annual IFTA Conference in Milan!
I would like to take this opportunity tothank all my colleagues on the IFTA board
for all the hard work and effort they put
forth for IFTA throughout the year.
Last, but not least, I would like to thankall member societies who shared updates
and news from your local societies withus. Sharing information, knowledge, andexperience is and will always be, in spirit,
the reason why IFTA exists and continues
to do so.
Best regards,

Mohamed El Saiid, CFTe MFTA
IFTA President

IFTA

Congratulations MFTA and CFTe Exam Dates
New CFTes!
Certified Financial Technician (CFTe)—Level I
Christopher Clarke (STA)

Ryan S. Marinelli

Jean Gabriel Cocinescu

Adrian Ong (TASS)

Dipl. CFTe Aladdin
Dargel (VTAD)

Antonio Pagotto (SIAT)

Matthias Dautz (VTAD)
Tarun Kumar Gandhi

Sumeet Pandey (ATA)
Linda Parman (AATI)

Date

Offered Year-roundSee our website for further instructions www.ifta.org/certifications/registration/
Syllabus and Study Guide www.ifta.org/public/files/publication-downloads/IFTA_CFTe_Syllabus.pdf

Certified Financial Technician (CFTe)—Level II
DateRegistration deadline

TBA Apr 201819 Oct 2017

TBA

1 Sep 2017

Jeremy Premand

Register at www.ifta.org/register/cfte2.php

Remo Hedinger

Kunal Rambhia

Syllabus and Study Guide www.ifta.org/public/files/publication-downloads/IFTA_CFTe_Syllabus.pdf

Vishwa Kalra

Rubén Sánchez
Ramírez (IEATEC)

Atul S. Hatwar

Robert Keller (VTAD)
Jasjiv Singh Kohli (STA)
Prof. Aldo Lagrutta (STA)

Amol Vipul Randeri
Jorge Seijo Giebels(IEATEC)

For more information on the CFTe program, visit www.ifta.org/certifications.

Master of Financial Technical Analysis (MFTA)
Alternative Path Pre-Application Deadline

ClosedApplication/Outline Deadline

Closed2 Oct 201715 Oct 2017

15 Mar 2018

Paper Deadline

31 July 2017

Victor Montfort Lloret(IEATEC)

Nicolas Simon(Session 1) Register at www.ifta.org/register/mfta_alt_session1.php/

Ross Love

Amine Slimani Tlemcani(Session 2) Register at www.ifta.org/register/mfta_alt_session2.php/MFTA/IFTA Journal Style Guide

Junzhang Lu

Akash Wadhwa

William Mamudi, (AATI)Hariyanto Wijaya

IFTAUPDATE 2017 Volume 24 Issue 2

page 5Congratulations
New MFTA

Member NewsBSG (Ghana)

IFTA welcomes new developing member
Bastiat Society Ghana (BSG). Please join
us in welcoming BSG to our IFTA family. The team presiding over the society includes president and liaison Prof.
Emmanuel Tweneboah Senzu, Ph.D.,
DBA, CBE, and the interim team of Mr.
Joseph Kwasi Appiah MPhil, BSc., PgDp,
CTA; Mr. Samuel Amoah Forson, BSc.,
PgDp, CTA; Mr. Albert Naabenyin, HND,
PgDp, CTA; and Mrs. Janet Ekua Appiah,
MPhil, PgDp, CTA

CSTA (Canada)

The Canadian Society of TechnicalAnalysts (CSTA) board of directors
would like to congratulate all of its
2017–2018 award winners and hall offame inductees: Technical Analyst of the Year: Colin
CIeszynski, CFA, CMT
 Technical Asset Manager of the Year:David Cox, CFA, CMT
 Technical Independent Analyst of the
Year: Greg Schnell, CMT, MFTA
 Top Technician in Traditional Media:
Don Vialoux, CMT
 Technical Technician in Social Media:
Colin Cieszynski, CFA, CMT
 Top Charting Software, Mobile App, or
Website: stockcharts.com

 Top Trading Platform for Trading: CMC
Markets
 Top Technical Analysis Team:stockcharts.com
 Technical Analysis Corporate Supporterof the Year: stockcharts.com
 Jack Frost Award: Giuseppe Basile, An
Examination of the Linkages Between
Money Management and Trading
Goals
 Hall of Fame: Leon Tuey, George Davis,
CMT, Ray Hansen, William Sharp

Congratulations MATA (Malaysia)
and FTAA (Hong Kong)!

IFTA has granted full membership status to two societies of Malaysia andHong Kong—the Malaysian Associationof Technical Analysts (MATA) and the
Financial Technical Analysts Association(FTAA), respectively. Please join me incongratulating and welcoming these
newest full-member societies to our IFTA
family!

SAMT (Switzerland)

The latest issue of the Swiss TechnicalAnalyst Journal, produced by the Swiss
Association of Technical Analysts (SAMT),
is ready to read online at www.samt-org.
ch/resources/journal.html. Links to ourpast issues are also on this site.

In this issue, we feature articles by fiveof the speakers from the upcoming 30th
Anniversary IFTA Conference to be heldin Milan in October.
Francesco Caruso will introduce us tohis work about his contrarian indicator:
the Fear/Complacency Index. Professor
Hank Pruden presents us with an article
about the Wyckoff Method combined with
the Elliott Wave Principle. We then havean interesting article by Perry Kaufman
about index and portfolio construction
and the first chapter of Robert Prechter’s
new book about the Socionomic Theoryof Finance, with a review by Professor
Pruden. Finally, Alberto Vivanti gives us
his thoughts about the construction process of a sector rotation strategy.
There is also an article with an tutorial
about Bitcoin from Giacomo Zucco, anarticle on monetary policies by Paulo
Musto, and one titled “EUR/USD: Parity
Target” by Ron William. Not to be missed
is the special offer that Robert Prechteris giving to all SAMT Journal readers forthe month of June.
We hope you enjoy this issue and lookforward to seeing many of you in Milanin October.

MFTA Research Paper Title:
M-Oscillator

Mohamed Fawzy, CFTe,
MFTA, is currently working as portfolio and fundmanager in the AssetManagement Department at
one of the biggest banks in
the UAE, Union National Bank.

Mohamed possesses strong expertisein equity asset management, including
portfolio management, trading, security
analysis, client relationship management,
finance, economics, and investment consulting. He has been presented with theBest Asset Manager award in the UAE at
the Middle East Summit and Awards 2014
and 2015.
Mohamed’s academic credentials include
a master’s degree in financial management and a bachelor’s degree in commerce, finance, and accounting (dual
degree specialization).
In his MFTA research paper, “M-Oscillator”,
he introduced an oscillator to fix the
problems associated with the traditional
momentum oscillator, such as absence ofboundaries (overbought and oversold) anddisproportionate moves in the momentum line vis a vis prices. The indicator also
works as a trend identifier.

IFTAUPDATE 2017 Volume 24 Issue 2

page 6

Education Lounge
Beyond Technical Analysis
UNCOMMON RSI SIGNALS

By Ivan Krastins (aka The Investment Educator)

I am very confident that most traders and analysts have heard of the Relative Strength
Index (RSI) of J Welles Wilder Jr. fame, or know the indicator or even actually use it for
their own analysis or trading. My article will deal with actually understanding the RSI.
Rest assured that there is a mile (whoops…a kilometre) of difference between ‘knowing’ and ‘understanding’ something. Whilst the name J Welles Wilder Jr. is quite wellknown, I had the pleasure of being exposed to another Wilder, namely Frank Wilder.
Frank was the programmer for his more famous brother, and through Frank, I gainedsome tremendous insights into actually understanding his brother’s indicators. Frankwas responsible for a charting package that I used extensively in my workshops in
the 1980s and 90s—One Day at a Time. It is really pleasing to see that it still exists
and even provides the ability to display a version of my Hybrid Fractal Charts.
A term, or concept, that is commonly applied with the RSI is divergence and is seen to
be the main signal provided by this indicator. It is also a concept that is often applied
rather loosely, resulting in a less than optimal outcome.
The formula for the RSI uses only the closing price, so it is preferable, at least in the earlystages of gaining a thorough understanding of the application of the RSI, to display a line
chart of the close (as opposed to a bar or candlestick chart) of the market being tradedor analysed together with the RSI. This will help you to not fall into the trap of seeing asignal that does not actually exist. One property of the RSI is that it always follows the
direction of the underlying market. In other words, if the market closes higher than theprevious period, the RSI will also be higher; if the market closes lower than the previous
period, the RSI will also have a lower value than on the previous period.

From this you can see that the RSI can never actually diverge (move in the opposite
direction) from the price. It is a visual illusion to believe that the RSI moves in the opposite direction of the price! You will see from this article that what does diverge are thepeaks and troughs of the price and the RSI!
As, broadly speaking, the RSI is a momentum indicator, it measures the relative strength(or momentum) of two movements in price. The fact that these two movements in priceshould be related to each other is often an overlooked aspect of applying the RSI. It isa bit like comparing apples to apples.

IFTAUPDATE 2017 Volume 24 Issue 2

page 7

Education Lounge
I shall now spell out a very strict (and hence testable) applicationof a bearish divergence signal for the RSI. Chart 1 features the daily
DJIA with a 7-period RSI.
1. The market must have a completed movement up (a close, ahigher close, and then a lower close).
2. The RSI must register a reading above 70.
3. The market must then move down (one or more lower closes).*
4. The RSI must not register a reading below its equilibrium level(50 percent).*
5. The market must then have one more movements up and exceed
its previous highest close.
6. The RSI must move above the 70 level but should not go above
its previous high reading (Point 2)
At this stage, the RSI is not confirming the new high in the market.
This is still not a completed divergence sell signal, but rather merely
a potential divergence sell signal. There is one more requirement
to go.
7. The market must register a lower close than a previous period,
thereby causing the RSI also to move down.
As long as the RSI has not registered a higher reading than it did at
Point 2, a textbook bearish divergence, or in Ivanspeak, non-confirmation, is complete. The real significance of my non-confirmationinterpretation will become obvious later in this article.
The fact that the decline of the market (Point 3) did not result in the
RSI going below its 50 level confirms that the second movement
up in price is related to the first movement up. Had the RSI broken
below its equilibrium level, the two movements in price would not
be seen to be related. This is an important aspect in my experiencein getting the best results when using the RSI to provide an early
warning of a potential top in a market.

Chart 1. Daily DJIA with a 7-period RSIIFTAUPDATE 2017 Volume 24 Issue 2

page 8

Education Lounge
I believe that chart 2 illustrates this point quite clearly. As the Index rises from A to B
in one movement, the RSI also rises to register a reading above 70. When the Index
then declines to C, the RSI proceeds to go down beneath the 50 level. The trendfollowing application of the RSI would now deem that the trend was actually down.
(I should note here that all momentum indicators can be used as trend-following
indicators and vice versa. More on that in an article on uncommon signals from moving averages.)
Whilst the pricedoes go on tomark a higher
close at D, thismovement up
consist s of t wo
movement s up
(as marked by
the dotted line).
The RSI registers
a reading above
70 and below its
reading at.

Chart 2. Daily chart of All Ordinaries Index with 7-day RSI

Not surprising, as
the movement of
the Index from C
to D is not related
to its movement from A to B
(because the RSI
went below 50),t h e s e l l ‘d i ve rgence’ between
the Index and theprice did not see the price fall. Rather, it merely went sideways for a few days andthen broke back to the topside.
According to the designer of the RSI, J Welles Wilder Jr, the signal to act is provided
by the RSI itself. The RSI needs to register a reading lower than at 4. This is referred
to as the ‘failure swing’ point.
I have observed over time that using a timing tool, either of the five provided bybar charts or the 13 using a candlestick chart tends to allow you to take a position
earlier than waiting for the RSI to break its failure swing point. For this, the market
must close lower and in many cases close much lower, thereby necessitating theuse of a large stop loss, and hence a larger risk. (In this article, I will be referring toboth bar chart and candlestick-chart-based timing tools, notwithstanding the factthat I have not used bar charts as examples.)Additionally, I have found that the better divergence signals come when there areless than 10 periods between the two peaks in price and correspondingly, also
between the two peaks in the RSI. In fact, the fewer the periods between those two
peaks, the stronger the signal seems to be. Again, with the software available on
the market, it would not be difficult for you to backtest this concept on the market
or markets that you are involved in, or even wish to trade.
Naturally, in the case of correctly defining an RSI buy nonconfirmation or bullishdivergence, you would be dealing with lows in price and lows in the RSI. In brief,both lows in the RSI ought to be below the 30 level; the second low in the RSI ought
to be higher than the first low, and the peak between those two lows in the RSI
should be below the equilibrium level of 50. At the same time, the closing price ofthe market needs to make a low, rally from that low close, and then close below its
first low close.
Again, the actual signal to adopt a long stance in that market, according to its author,
would occur when the RSI penetrates its failure swing high point.

IFTAUPDATE 2017 Volume 24 Issue 2

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Education Lounge
Chart 3 features a textbook bullish divergence (A) with the two lows in the RSI being
merely three periods apart. Both lows of the RSI are below the 30 level, and the failure
swing high point is well and truly below the 50 level. In fact, the RSI did not even manage to break above the 30 level. Nor is it a prerequisite that it should.
I believe that it is important to reinforce the textbook examples of the use of an indicator, especially when starting out on the journey of learning something new. Using thesetightly defined parameters with the RSI, you will be able to backtest the concept quite
easily. Additionally, you will see how infrequently this indicator actually provides a signal.
Naturally, you will still need to come up with initial, trailing, and maybe even time-based
stop loss ideas, exit rules, position sizing concepts and general money management
routines before you have a robust, rule-based trading system. And you thought thattrading was an easy way to earn a living! Well, once you do have a set of rules to follow,

just like when driving a car, trading can be simple and easy. And I almost forgot…asboring as watching grass grow!
Chart 3 also provides one example of an uncommon RSI sell signal at B. This occurs
when the RSI provides a reading below 70, then just one, or a maximum of two consecutive readings above 70, and the next one is below 70 again. It is as if the market
just manages to poke its head into an overbought zone (above 70) and then retreats.
The actual short entry may be based on the period that sees the RSI register its firstreading below 70, or indeed, you could again use a chart signal (either bar chart orcandlestick-chart-based) to time your entry into a market. For fairly obvious reasons, I
have termed this an RSI extreme signal.
For a buy, the RSI needs to register above 30, then below 30 for one or two periods
only, and then back above 30. By combining this idea with a chart signal or even a
setup, the probabilities of success increase.
In fact, you may discover that simply placing a buy on stop order above the high of thefirst period that has the RSI register below 30 provides you with some interesting anduseable results. On the flipside for a sell, a sell on stop order below the first period thatsees the RSI go above 70 also seems to coincide with turning points.
And is that not exactly what the RSI is designed to do? After all, it is a reversal indicator!
It was designed by J Welles Wilder Jr. to pick tops and bottoms in markets way backin the late 1970s.

Chart 3. Daily closing line chart of Dow Jones Industrial Average with a 7-period RSI

A. Not only does the RSI highlight the fact that the market was oversold for the firsttime (by being below 30), the period is also one of the high probability chart signalsthat I wrote about last year. Thank you to those readers who contacted me about
their experiences with this idea.
B. This time, the market was not accompanied by a chart signal and did not break thelow of the period that had the RSI first register above 70. The following period bothsaw the RSI below 70 again, as well as being an inside period. Inside periods indicatethat a market is indecisive, with neither the buyers nor the sellers being able to gain
the upper hand. Had a short position been taken on the close of this inside period,or even on the break of the low on the following period, a loss would have ensued.

IFTAUPDATE 2017 Volume 24 Issue 2

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Education Lounge
Is it the frequency of the opportunity or the probability of success that really counts?
Applying my Universality Test, one could look for the same RSI opportunity on a variety
of markets and a variety of timeframes, including Hybrid Fractal Charts (HFC). This would
naturally have the effect of providing more potential trades.
The next uncommon RSI signal is based on the term that I used earlier in this article
instead of divergence. That was non-confirmation. It is also a simple concept that you
can backtest to see whether it suits your requirements in trading and observe how it
performs in your market or markets of choice. I have dubbed this uncommon applicationof the RSI angle non-confirmation. This may be a bit of a mouthful at first, but the namereally does describe the signal rather well.
For a sell, the RSI must first go above 70, then retreat to no lower than 50, and thenonce again climb up above 70. This time, however, the RSI needs to exceed its previous
high reading. At the same time, the market needs to register a high close, followed by
one or more lower closes, and then the market needs to also exceed its previous highclose. Now you draw a line connecting the two peaks in price and do the same withthe two peaks in the RSI.
Chart 4. Weekly candlestick chart of the All Ordinaries Index with a 7-period RSI

C. This time, the required reading by the RSI was accompanied by one of the highprobability setups that seems to perform and perform. I refer to it as invisible supportand resistance in my book Listen to the Market. It is interesting to note that the RSI
reading was 70.26 this period, whilst three periods prior, the RSI registered 70.00.
The requirement is for the RSI to be above 70.00, so there was no signal three
periods ago. Rules can and I believe do need to be so precise and black and white.
D. The final example on this chart of an uncommon application of the RSI again features
the RSI going from above 30 to below 30 for just one period, and being accompaniedby the inverse of the setup that was seen at C. The market then embarked on arally complete with a hammer signal that could have been used to add to the initiallong position.
From the previous example covering 10 months of weekly data, you saw that there were
only four opportunities highlighted by this uncommon application of the RSI. Many traders would not have the discipline and patience to wait so long for so few signals to act.

The final step is to compare the angles of these lines. If the angle between the RSI
peaks is not as steep as the angle of the line between the closes, then all the requirements have been met. This occurs at A on Chart 5. As with the common application of
RSI bearish divergence, when the RSI breaks below its failure swing low at B, a shortstance in the market is signaled by this approach.
Please note that the price does not have to break below its previous swing low. However,that is not to say that you could not add that requirement to your own application ofthis RSI concept.
With an angle non-confirmation buy signal, you require the RSI to move below 30 andthen move up for at least one period without going above 50. It is not a requirement for
the RSI to go either above 30 or not, but merely to not go above the 50 level.
The final requirement is for the RSI to go down lower than it did the first time. As all thisis happening, the market needs to register a low close followed by a higher close (forone or more periods), and then to close lower than it did the first time.

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The next step is to compare the angle of the line drawn connecting the two low closes
with the angle of the two corresponding lows in the RSI. If the RSI line is not as steep
as the line on the market closing prices, then it is all systems go for a possible low inprice to be in place. You can see that marked on the chart at C.

Chart 6 illustrates a textbook bullish angle non-confirmation, as well as the ability of achart signal to highlight a potential turn before the RSI does. The second last close on
the chart is clearly lower than the close at A.
You have to look at the numeric values of the RSI to establish that at
B, the RSI was 22.74, and at the previous swing low (corresponding
with A on the price chart), the RSI was
22.86. Hence, even though on the chart it appears that the twolows of the RSI are equal, closer examination reveals that thesecond one is lower.
By comparing the angle of the two lines, you can see that theline on the RSI is not as steep as the one on the price chart.
The last period closing higher than the previous period causes
the RSI to move up and break above its failure swing high point
at C. Job done by an uncommon application of the RSI.
Again, from my perspective, detail with trading, as with life, does
make a difference to the outcome.

Chart 5. Daily line chart of the Dow Jones Industrial Average with a 7-period RSI below it

When, or if, the RSI breaks above its failure swing high point marked D, this technique
is signaling a low to be in place.
Other triggers, such as the various chart signals that I have mentioned before, can beused. As with most aspects of life and trading, when a number of signals coincide inproviding a signal, the probability of success is higher. You may have noticed on theprevious chart that the angle non-confirmation buy signal coincided with a Fibonacci
retracement level of the rally from the mid-August lows to the early September highs.

It is interesting to note that the second last period was a highprobability candlestick chart signal (a spinning bottom) having aChart 6. Bullish angle ‘small’ real body, with the upper and lower shadows being ‘large’
non-confirmationin comparison to the real body.
I am confident that your own testing of this timing tool will reveal
exactly what the commonly used and vague terms ‘small’ and ‘large’ really mean.
One really has to look at the actual price data to see this clearly. This was then followedby the last period being a high probability bar chart buy signal (pivot point).
These signals are akin to the road signs that we regularly see when we are driving.
Generally, we tend to obey them, and occasionally we choose not to! Markets also havetheir own road signs, so to speak.

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Later in this article you will see a larger chart of the same market with the same bullish angle non-confirmation signal marked on it. That signal occurred at the end of thebear market in the Japanese stock market that lasted 14 years. The Nikkei topped at
38,915.90 in 1989 and made its final low at 7,697.88 in 2003. That was a decline of
31,308.02 points, or 80.45%.
History has shown that one can experience falls of this magnitude when a bubble bursts.
The Dow Jones fell by 89% after the 1920s bubble burst, whilst the Australian stock
market fell by a smaller amount during the Great Depression. In order to spot changesof this size, you really do need to examine large timeframes. The chart featured on thispage is a monthly chart. There is even a strong case to be made for using even larger
timeframes, such as three monthly, six monthly, and even yearly charts. The larger thetimeframe you are using, the larger the potential movement you are able to trade.
So far, we have looked at two uncommon signals from the RSI that required the RSI toregister an overbought reading or an oversold reading (the RSI extreme signal). In otherwords, the RSI had to be above the 70 line to confirm that the market was overbought,
or be below 30, showing that the market was oversold.
The next and final uncommon RSI signal occurs when the RSI is between those twolevels. As the RSI spends most of its time between 30 and 70, with rare sorties either
above 70 or below 30, it would be logical to believe that there would be more signals
to be found by this last uncommon application of the RSI.

Chart 7. Monthly candlestick chart of the Nikkei with a 7-period RSI below itWith this uncommon application of the RSI, you need to focus on what the RSI does first
and then look to the price chart to see if the market is confirming the RSI movement.

The moving average on the chart confirms that the market is in a downtrend, thereby
reinforcing the sell signal.

Let’s take some time now to walk through five odd years of price action in the Nikkei
on the next page. Only by studying the past can one endeavor to see into the future.
History may not repeat exactly, yet it does rhyme.

Two periods (months) later, the market presented a high probability sell setup, andthe following month also provided a bar chart sell signal (a pivot point). The market
then continued to decline for 10 more months before the angle non- confirmation buy
signaled a possible low.

The area market by the ovals in Chart 7 shows you where the previous chart fits into
the big picture.
In the following chart, notice when the RSI breaks above its previous swing high (A) that
occurred in the prerequisite area, between 30 and 70, the Nikkei at B did not break its

corresponding high (also A). This set up the desirable internal non-confirmation signal
with this application of the RSI.

When the RSI breaks below C, a swing low, the market at D is nowhere near breaking
its corresponding low, also marked
On this occasion, the candlestick chart provided a timing tool that could have been

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used to actually trigger a long position. Additionally, the moving average was pointing
upwards, indicating that an uptrend was in force and that buys were warranted for those
who are dedicated trend-followers.

The concepts remain exactly the same and can be applied in the same fashion.
The larger the number of periods used, generally the fewer the opportunities that arepresented and, arguably, the stronger the resultant movement.

The last example on this chart occurs when the RSI breaks its previous swing low at
E and the market does not break its corresponding swing low point. The RSI value at
E was 47.32, and the period that breaks that sees the RSI register a reading of 45.80.

From the charts on this page you can see that a textbook bearish divergence (A) is
provided by all the RSIs—5, 7 and 14.

Whilst it does take a keen eye to see the break on the chart, in real time you would
actually check the values of the RSI with your charting software.

When J Welles Wilder Jr. released this indicator to the trading world, he actually used
14 as his suggested number of periods for the RSI.

As both readings of the RSI were between 30 and 70, this qualifies as an internal nonconfirmation buy signal. Again, the moving average was pointing up, adding moreweight to the potential buying opportunity. The very next month provided a bar chart(a reversal) buy signal that could have been used for the timing of a long position.

Both the 5- and 7-period RSI also provide one of the uncommon signals (the extreme
signal), with the 5-period giving a buy at B and then a sell at C. The 7-period RSI only
provides one, a sell, at B. Not surprisingly, as it is slower to react to the price movements,
the 14-period RSI is the slowest of all.

Whilst I have been using a 7-period RSI in all these examples, in reality, any period
RSI can be used in the same fashion. The smaller the number of periods used for any
indicator, the more sensitive and reactive that indicator becomes to price movements.

The 14-period RSI is the only one to provide another of the uncommon signals. At B, the
RSI has broken lower than its previous swing low, whilst the price is certainly above its
corresponding low. In other words, the price is not confirming the new low in the RSI,and hence is seen as a potential buying
opportunity.
By looking at these three examples ofusing different periods with the RSI, you
can see that there is a case for using
more than just one.

Chart 8. 5-period RSIChart 9. 7-period RSIChart 10. 14-period RSI

The more signals, the more potential
trades. Equally, the greater the danger of doing damage to your trading
account. Hence, it is vital to always onlyrisk a small percentage of your accountto any one campaign. Somewhere in
the order of 1 or 2% ensures that you
will be around for a long time as wellas potentially for a good time!

IFTAUPDATE 2017 Volume 24 Issue 2

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Education LoungeThis final example in Chart 11 features two of the uncommon RSI signals that I have discussed in this article. At A, the All Ordinaries Index registers an extreme oversold reading
for the first time on the chart. The period that created that extreme low reading in the
RSI is neither a chart signal to adopt a long position in the market nor a setup for a buy.
Given the observation that the market opened at the highs and closed virtually at thelows for that week, and closed below previous support levels, it would have been reasonable to deduce that the sellers had been the dominant force. Also, given the sizeof the range, it would have been reasonable to deduce that the market players wererather bearish and probably short in the market.
So what should have the market done on the following period?
It should have continued its fall, naturally! It did not, and the RSI was below 30 for asecond period. This meant that the uncommon extreme application of the RSI was stillin buy mode. Additionally, a high probability buying setup (one of the 12 L.I.V.E. setups)
was also present on the All Ordinaries Index. And rally the market did, without breaking
a weekly low until the RSI registered an overbought reading the first time.
The angle non-confirmation sell signal at B also coincided with the second time the RSI
registered above the critical 70 level for an extreme overbought sell signal. Probabilities
of success do increase when more than one technique signals a possible trade simultaneously. The following week featured a sell timing tool in the form of a pivot pointand formal entry being signaled by the RSI going below its failure swing low of fourweeks earlier (C).
None of the concepts I have presented to date dealing with uncommon and common
applications of indicators are difficult or hard to master. I believe that to be able todecide whether an indicator is suitable to be included in your arsenal of trading tools,
you do need to have more than just a passing knowledge of it.
It is only with a true understanding of them that you are in a position to make a valid
judgment.
The RSI itself has many other aspects that are beyond the scope of this article. One
such idea is to apply the RSI to the opening price, thereby being able to create a day
trading tool. More on that another time.
Enjoy your journey, as it is truly your journey!

Ivan Krastins

Chart 11. Weekly candlestick chart of the All Ordinaries Index with a 7-period RSI

Ivan Krastins has been conducting his specialized courses on analysis
and trading of the financial markets since the early 1980s. To date,he has presented his various courses and workshops in Australia,
New Zealand, Singapore, Hong Kong, Malaysia, Indonesia, theUnited States, and Vanuatu. They have also been used by organizations such as the Institute of Banking and Finance Singapore, theSecurities Institute of Australia, and the Sydney Futures Exchange. From 1991 to 1994
Mr. Krastins presented his workshops in Singapore through the Institute of Banking and
Finance. He also conducted real-time in-house training to brokerage houses and banksin Singapore, Malaysia, Indonesia, and Hong Kong, as well as consulting to Reuters

IFTAUPDATE 2017 Volume 24 Issue 2

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and Knight-Ridder. Mr. Krastin’s
highly acclaimed book, Listen to theMarket, was published by McGraw-Hill
in 1991. “It is the most comprehensive
explanation of technical analysis wehave seen to date. The clear, lucid
style makes the book not only easy
to read, but simple to refer back to
as a reference document,” is how Mr.
David Stewart (national sales manager, AAP Reuters Economic Services)
described the book. The book has
been used as a textbook at universities in Asia and Australia.
After being featured on the coverof Your Trading Edge (an Australian
trading industry magazine) in 1996,
Mr. Krastins retired from conducting his trading workshops and by
2002, finally settled in Vanuatu.
There, he is still involved in markets
trading, writing, and conducting his
unique L.I.V.E.T.M. program.

Sell in May and Go Away?
By Don Vialoux, CMT

Equity investors often hear about “Sell in
May and Go Away” at this time of year.
The saying implies that investors should
sell their equity securities in early May andbuy them back in late October at a lower
price. Dates most frequently connectedto the strategy by technical and seasonal
analysts are May 5 and October 27.
Data during the past 66 periods using
May 5 and October 27 does not support
the expression. An updated study by
EquityClock on the S&P 500 Index applying October 27 as the buy date and May
5 as the sell date recorded a nice profit
as expected: the S&P 500 Index gained
an average of 8.42% per period and was
profitable 80.6% of the periods. However,the study also found that applying May 5
as the buy date and October 27 as the selldate recorded a profit averaging 0.20% perperiod (i.e., not a loss) and was profitable
62.7% of the time.
A shorter study of the past 20 periods
confirmed that most profits by the S&P
500 Index were recorded during the
October to May period. However, the date
for the average optimal time for a seasonal

low by the S&P 500 Index was adjusted to
October 15, and the date for the average
optimal time for the Index to reach a seasonal top was adjusted to June 15.
A “grain of truth” has been found in the“Sell in May and Go Away” expression.
A study of the past 20 May–October periods found that the S&P 500 Index experienced a correction in every period fromtheir seasonal high to their seasonal low.
Losses ranged from a low of 5.3% in 2003
to the “grand-daddy” of losses in 2008 at
41.7%. Average loss per period was 14.9%.
Moreover, most losses were abrupt andsevere: They tended to happen within one
month during the May–October period.
All corrections during May–October periods were triggered by unexpected events:
For example, the correction last year was
triggered by Brexit, the correction in 2015
was triggered by a temporary meltdown
by the Chinese equity market, and the correction in 2008 was triggered by a general meltdown by world financial markets.
Corrections occur at random times during
the May–October period. What will be thetrigger this year? Not known at this time

(North Korea, U.S. health care and taxes,
trade wars?)!
In conclusion, the May to October period
has a history of proving to be a danger
and an opportunity. Investors are wise to
be aware of the danger of a correction andshould look for an opportunity to buy atannual/seasonal lows after the correction
has passed.
Investors can avoid most of the damage
to North American equity portfolio values during the May–October period byusing two simple technical indicators, the50-day moving average for an Index suchas the S&P 500 Index and the VIX Index.
These indicators are not perfect and occasionally are whip sawed, but have provento be reliable during most of the past 20
periods. When the S&P 500 Index moves
below its 50-day moving average and the
VIX Index spikes, it’s time to lighten portfolio weights in ETFs and stocks related to
the S&P 500 Index.
What is “Sell in May and Go Away” currently telling us about U.S. equity markets? The VIX Index is quiet: It touched

IFTAUPDATE 2017 Volume 24 Issue 2

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a 24-year low on Monday, May 8. Major
U.S. equity indices remain nicely above
their 50-day moving average, including the S&P 500 Index at 2,399 with a
50-day moving average at 2,366, the Dow
Jones Industrial Average at 21,007 with a
50-day moving average, and the NASDAQ
Composite Index at 6,101 with a 50-day
moving average at 5,904.
The TSX Composite Index has a similar
data profile to the S&P 500 Index. The
Index at 15,582 is flirting with its 50-day
moving average at 15,563. Triggers to
avoid damage in Canadian equities andETFs during the May–October period frequently occur at the same time as triggers
by U.S. equity indices.
Based on these two technical indicators,
liquidation of U.S. equities and ETFs
because the May 5 date has passed
is not warranted yet. Current seasonaltrades in selected sectors, such as biotech, technology, and aerospace, continue
to work and are good hold candidates.
However, a correction exceeding 5%
between May and October this year ishighly likely. Watching technical parameters closely to know when to take trading
profits prior to the expected correction ispreferred.
Data showing return by the S&P 500
from seasonal high to seasonal low (May/
October)Year

Loss (%)

1997

13.0

1998

22.5

1999

13.1

2000

14.6

2001

28.2

2002

29.9

2003

5.3

2004

7.4

2005

6.3

2006

8.1

2007

11.9

2008

41.7

2009

9.1

2010

14.6

2011

25.6

2012

10.5

2013

7.5

2014

9.8

2015

13.5

2016

6.1

Disclaimer: Seasonality and technicalratings offered in this report and www.
equityclock.com are for information only.
They should not be considered as advice
to purchase or to sell mentioned securities. Data offered in this report is believed
to be accurate but is not guaranteed.

Don Vialoux, CMT

Don Vialoux, CMT, ispast president of theCanadian Society ofTechnical Analyst s(CSTA) and has 46
years of experience in
the investment industry. He is the authorof a daily blog on equity markets, commodities, currencies, and interest rates,with a focus on seasonality. The blog isavailable at www.timingthemarket.ca andis closely associated with another blog at
www.equityclock.com that offers free seasonality reports. Mr. Vialoux is a frequent
presenter on Business News Network
Television, Canada’s business news television channel. He is also the author of intraday comments on www.StockTwits.com,
with over 37,000 followers.

IFTAUPDATE 2017 Volume 24 Issue 2

page 172016 Bronwen Wood Award WinnerThis award is presented to the candidate who had the best Certified Financial Technician (CFTe) paper for the year.

Ruslan Mikhailov, CFTe
Moscow, Russian Federation
R u s l a n M i k h a i l o v,
CFTe, was born inKazakhstan, and fromthe earliest years of
his life, he was interested in two things:
figures and psychology. The first one led him to the best
mathematical school in his country
and to the international contests andchallenges. The second led him to psychological and brain studying courses
during his final school years. And bothof them led him to the economic department at Moscow State University, where
he was able to combine everything heloved so much.
During Ruslan’s first year at the university, his brother showed him a candlestick chart. At that time, he had no idea
what it was, but it turned out to be his
future. The chart looked so interesting to him that he immediately went tobookstore and bought what turned out
to be one of the best books he’s everread in his life—The Market Wizards, byJack Schwager. Ruslan didn’t understandanything but two words in this book:technical analysis, and it was something
he decided to dedicate his life to. So hestarted studying, trading, and gaining
experience.
To support his progress, Ruslan went toJapan, a country that has contributed
greatly to technical analysis. There, he
met Seiichiro Iwasawa, a Harvard Ph.D.
in economics, whose behavioral financecourse proved to Ruslan the clear logic
behind technical analysis. After that,
Ruslan decided to pursue his CFTe
diploma and work as a trader in OSTS,
one of the biggest proprietary trading
companies in the world.
Currently, Ruslan works as a CTA andconsults several companies with regard
to front-end trading software and investment and funding solutions. In his sparetime, Ruslan conducts research, writes
books, plays in a rock band, and studies
various languages.

In Memory of Bronwen Wood

Bronwen Wood was one of the founding board members of IFTA’s Society ofTechnical Analysts (STA). She was instrumental in developing both the CFTe
Diploma Examination and the preparatory courses for the examination. She

wrote and graded all papers in the earlyyears. Ms. Wood was a great technicalanalyst, rated one of the best by her
peers, particularly for her work on theequity indices and individual shares. For
both her contribution to education andher outstanding analytical skills, she wasmade a fellow of the STA in 1993. Ms.
Wood was also a long-standing member of the IFTA board in various capacities. Through this connection, she wasrespected worldwide as an outstanding
technical analyst and an expert in theteaching of technical analysis.

Past winners of the award: 2015 Lorenz Weidinger, CFTe
(Germany) 2014 Jörg Rühlicke, CFTe (Germany) 2013 Sebastien Duhamed, CFTe
(France) 2012 Jean-Francois Owczarczak, CFTe
(Switzerland) 2011 Muhamad Makky Dandytra, CFTe
(Indonesia)
 2010 Manasi Kumbhat, CFTe (UAE) 2009 Hisham Abdullah A. AlQuohi,
CFTe (Saudi Arabia)
 2008 Tamar Gamal Eldin Hassan,
CFTe (Egypt)

IFTAUPDATE 2017 Volume 24 Issue 2

page 18

2016 John Brooks Memorial Award WinnerThis paper is presented for the best Master of Financial Technician (MFTA) research paper written each year.

Tomoya Suzuki, Ph.D., MFTA
Hitachi, Japan
tomoya.suzuki.lab@vc.ibaraki.ac.jp
MFTA Research Paper
Title: Consensus Ratioa n d Tw o - S t e p s
Selection to Detect
Prof itable Stocks:
M o d e r n Te c h n i c a l
Analysis Using Machine
Learning Approach
Dr. Tomoya Suzuki received his B.S.,
M.S., and Ph.D. degrees in physics fromthe Tokyo University of Science in 2000,
2002, and 2005, respectively. In 2005, hejoined Tokyo Denki University as an assistant to teach electric circuits. From 2006
to 2009, he was a lecturer of Doshisha
University, teaching computer languages
and computer engineering. Since 2009,
Dr. Suzuki has been an associate professor and then a professor at Ibaraki
University, teaching mathematics, statistics, and computer science.
His research interest is the physics ofcomplex systems, especially financial
markets, and his research methods aretime series analysis, prediction, machinelearning, and data mining with computers.
In particular, his recent research involves
the integration of technical analysis,
physics, and computer science. From thisviewpoint, his MFTA research paper hasreported that nonlinear prediction models based on neural networks have a highpotential for developing new technicalanalysis methods. Moreover, he also has agreat interest in evidence-based technicalanalysis and has been giving seminars for
NTAA members to emphasize it.

In Memory of John Brooks

John Brooks was a highly respected technical securities analyst who worked at anumber of prominent Wall Street firms,
including Edwards & Hanley, Robinson
Humphrey, and Lowry Research, where
he served as senior vice president andsenior analyst.
During his long and distinguished career,
John was the co-founder and pastpresident of the Market Technicians
Association (MTA) and was one of thefirst recipients of the Chartered Market
Technician (CMT) designation in the
United States. In 1985, he co-founded
the International Federation of TechnicalAnalysts (IFTA) and served as chairman

from 1996 to 1998. As the long-timechairman of the Market Technicians
Association Educational Foundation, John
was instrumental in establishing accredited college-level courses in technicalsecurities analysis in many universities.
John was also a co -founder of theAmerican Association of Professional
Technical Analysts (AAPTA) and servedon its board of directors. John authoredthe highly regarded book Mastering
Technical Analysis, published by McGrawHill in 2005. His many awards include theprestigious Market Technicians Association
Award for Outstanding Contribution to
the Field of Technical Analysts and theTechnical Securities Analysts Associationof San Francisco’s Lifetime Award for
Outstanding Achievement in TechnicalAnalysis. In recognition of his support oftechnical securities analysis throughout theworld, John was also named a Fellow of the
British Society of Technical Analysts (STA).

Past winners of the award: 2015 Miyoko Nishimura, CMTA, CFTe,
MFTA (Japan)
 2014 Adam Cox, MFTA (New Zealand) 2013 Alex Neale, MFTA (United Kingdom) 2012 Yoshinobu Sakai, CFTe, MFTA (Japan)

 2011 Stephan A. Belser, CFTe, MFTA
(Germany) 2010 Mohamed Elaasar, MFTA (Egypt)
 2009 Pavlos Theodoulos Ioannou, MFTA,
CFTe (Cyprus) 20 08 Francesco Caruso, M F TA
(Switzerland)

IFTAUPDATE 2017 Volume 24 Issue 2

page 19IFTA Board of Directors Nomination FormIFTA is an international organization established to advance the interests of the global
community of technical analysis societies. IFTA is managed by a board of directors, which iselected by the member societies at the Annual General Meeting, normally conducted at
the time of IFTA’s Annual Conference. In selecting a slate of candidates for the IFTA
board of directors, IFTA seeks to have the management resources, global representation, diversity, expertise and experience needed to advance its mission.
IFTA is now requesting nominations from individuals to serve on the board of directors for
the October 2017 – October 2020 term. IFTA estimates that two board vacancies will
be filled at the 2017 Annual General Meeting in Milan. Nominees must be willing toserve as a member or chair of a key IFTA committee and/or assist the committees andthe board in ongoing work as needed.
Board members serve without payment for their work on the IFTA board of directors.
Service on the IFTA board demands a high level of responsibility and a serious commitment to support IFTA’s mission; it also provides personal and professional rewards to
its members. Nominations from all interested persons are welcome. The deadline
to submit nominations is August 21, 2017.

Nomination Form: IFTA Board of Directors
Name of Nominee

Firm

Address

City

State

Postal Code

Phone

Fax

Email

Country

Member in Good Standing of (Name of IFTA Member Society):

Nominated by

The nomination procedure is simple:
1 Any member in good standing of an IFTA member society may be nominated or
may nominate him/herself.
2 Nominations must be seconded by two members in good standing of an IFTA
member society.
3 The nominee must have the support of the board of directors of a local member
society, preferably his or or her own Society.

Persons seconding this nomination (must be members in good standing of an IFTA member
society). Two seconders required.
1)
Name

SocietyNameSociety2)

4 Each nominee must submit the following to IFTA Headquarters no later than August21, 2017.
a Completed Nomination Formb Completed IFTA Member Society Endorsementc Summary or Curriculum Vitae (CV)Nominee must have the support of the board of his/her IFTA member society. A completed IFTA
Member Society Endorsement (below) must accompany this Nomination Form. A summary of thenominee’s professional credentials and background must accompany this application.
Nominations deadline: August 21, 2017.

5 All nomination materials should be sent by email or postal mail to:

IFTA Member Society Endorsement

International Federation of Technical Analysts
9707 Key West Avenue, Suite 100
Rockville, Maryland 20850 USA

Phone: (240) 404-6508
Fax:(301) 990-9771
Email: admin@ifta.org

Nominations will be announced to the membership in early September. Voting will takeplace at the IFTA Annual General Meeting on October 19, 2016. If you havequestions concerning this matter or would like a nominating form, please contact IFTA
Admin at admin@ifta.org.

Name of Nominee

Name of IFTA Member Society

and has the support of the society’s board of directors to run for a position on the IFTA board of directors.

Signature of Society Officer

DateIFTAUPDATE 2017 Volume 24 Issue 2

page 20IFTA Member Societies
AUSTRALIA—ATAA Australian Technical Analysts Association www.ataa.com.au
CANADA—CSTA Canadian Society of Technical Analysts www.csta.org
EGYPT—ESTA Egyptian Society of Technical Analysts www.estaegypt.org
FRANCE—AFATE Association Française des Analystes Techniques www.afate.com
GHANA—BSG* Bastiat Society Ghana bastiatghana.org
GERMANY—VTAD Vereinigung der Technischer Analysten Deutschlands e.V. www.vtad.de
HONG KONG—FTAA Financial Technical Analyst Association www.ftaa.org.hk
INDIA—ATA The Asociation of Technical Analysis www.taindia.org
INDONESIA—AATI Asosiasi Analis Teknikal Indonesia
ITALY—SIAT Società Italiana di Analisi Tecnica www.siat.org
JAPAN—NTAA Nippon Technical Analysts Association www.ntaa.org.jp
LEBANON—LSTA Lebanese Society of Technical Analysts www.lstalebanon.com
MALAYSIA—MATA Malaysia Malaysian Association of Technical Analysts site.malaysianchartist.com
NIGERIA—TASN Technical Analysts Society, Nigeria www.tasnigeria.org
NEW ZEALAND—STANZ Society of Technical Analysts of New Zealand www.stanz.co.nz
ROMANIA—AATROM Asociatia Analistilor Tehnici din Romania www.aatrom.org
SCANDINAVIA—STAF Skandinaviens Tekniska Analytikers Förening www.staf.nu
SINGAPORE—TASS Technical Analysts Society (Singapore) www.tass.org.sg
SPAIN—IEATEC Instituto Español de Analistsas Técnicos y Cuantitativos www.ieatec.es
SOUTH AFRICA—TASSA Technical Analysts Society of Southern Africa www.tassa.org.za
SWITZERLAND—SAMT Swiss Association of Market Technicians www.samt-org.ch
TUNISIA—ATAT* Association Tusisienne des Analystes Technique
UNITED KINGDOM—STA Society of Technical Analysts Ltd. www.sta-uk.org
USA—TSAASF Technical Securities Analysts Association www.tsaasf.org
USA—AAPTA American Association of Professional Technical Analysts www.aapta.com* Developing

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The IFTA Update is the quarterly electronic newsletter of the International Federation of TechnicalAnalysts, reaching more than 6,950 IFTA colleagues worldwide. The Update is an efficient and costeffective way to communicate with IFTA’s member societies and colleagues.

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Board of Directors
President Mohamed El Saiid, MFTA, CFTe (ESTA)
m.elsaiid@gmail.com
Treasurer Karin Roller, CFTe (VTAD)
karin.roller@vtad.deVice President Middle East and Africa; Examination Director Saleh Nasser, CFTe, CMT (ESTA)
saleh.nasser@pharosholding.com
Vice President Europe Simon Warren, MSTA, CFTe (STA)
simonwarren18@gmail.com
Vice President Americas Jeanette Anne Schwarz Young, CFP®, CMT, M.S. CFTe (AAPTA)
optnqueen@aol.com
Vice President Asia-Pacific Affairs Akihiro Niimi, MFTA, CFTe (NTAA)
niimia@aifam.jp
Education Director Dr. Gregor Bauer, Ph.D., CFTe (VTAD)
gregor.bauer@vtad.de
Conference Director Mr. Francesco Caruso, MFTA (SIAT)
info@cicliemercati.it
Development Director Ron William, MSTA, CMT (SAMT)
ron.william@samt-org.ch
Secretary, Development Director and Asia-Pacific Affairs Takashi Nakamura, MFTA, CFTe (NTAA)
nakamtak@mse.biglobe.ne.jp
Journal and Newsletter Director Aurélia Gerber, MFTA, MBA, CFA (SAMT)
aurelia.gerber@ifta.org
Membership Director Alek Jankowski, BE, M.Eng.Sc., Grad.Dip.Mgt. (ATAA)
Alek.Jankowski@ATAA.asn.au
Marketing and Webinar Director Tom Hicks (STA)
tom.hicks@live.co.uk

Staff

Executive Director Beth W. Palys, FASAE, CAE
Senior Vice President, Meetings Grace L. Jan, CAE, CMP
Senior Member Services Manager Linda Bernetich, CAE
Marketing Manager Julie Hill
Senior Graphic Designer Jon BenjaminAccounting Dawn Rosenfeld
Editor Lynne Agoston

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International Federation of Technical Analysts
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Rockville, MD 20850 USA

Phone: +1 (240) 404-6508
Fax: +1 (301) 990-9771
Email: admin@ifta.org