Why go to the effort to gain a qualification in technical analysis. A good reason alone is to learn it to a level of recognized confidence. Many people take the courses associated with qualifications without taking the exams. They are not in the industry and do not need the recognition of a qualification. Some also like the social networking side of working with people who are also learning the skill.
The biggest motivation to go to the effort of preparing and studying for the exams is to receive recognition amongst their peers as a competent technical analyst. Being a good technical analyst is a skill. It is not a science. You have probably passed your driving test. This does not mean you are a good driver. It means you have exceeded the minimum competence required to call yourself a driver. Others, including the police, recognize you as a competent driver. If you are asked if you can drive, you can answer truthfully, yes. Pressed further you may be able to say you have driven for 20 years without an accident. That makes you a good driver. So it is with technical analysis, you can work and pass one of the exams and become qualified as a technical analyst. Others will recognize you as a technical analyst. In your job you can say without embarrassment you know about technical analysis. But the qualification will not necessarily make you a profitable trader or accurate analyst. That comes later when you have added skill to your knowledge.
There are a number of routes to becoming a qualified technical analyst. We look here at their differences and their costs. There are two organizations which test in technical analysis the Market Technicians Association, the International Federation of Technical Analysis. We look at both of these exams in details and the organizations themselves. We hope this will encourage you to decide which route you go to become a qualified professional technical analyst. The important thing is though, do become one. It‟s worth it.
The MTA, a not-for-profit organization, confers the qualification Chartered Market Technician (CMT). It is awarded for proficiency in charting and technical analysis on competition of their program and on passing their exams. The designation is well-recognized and respected and is a confirmation of competence in technical analysis.
The MTA was started in 1973 and was initially a member of IFTA but broke away some years ago. It is based in New York and was formed by Ralph Acampora, John brooks and John Greeley. There are nearly 4,000 members in more than 74 countries. The MTA has branches called Chapters. There are 42 Chapters many of them in the US but increasingly over the rest of the world. There are currently more than 1,000 CMTs, the first one awarded in 1989. The MTA works hard to expand its contacts with universities and the regulators. The CMT qualification counts as a credit towards the SEC Series 86 qualification required for analysts.