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NCFM Workbook on Technical Analysis – A must read!
59 comments
November 23, 2013
Category: Review - Books

Traders,

Review: NCFM (NSE’s certification on financial markets) workbook on Technical

analysis

Price Discounts Everything !

Technical Analysis is the science or an art of forecasting the direction of prices

through the study of past market data, primarily price and volume. Technical
Analysts (TA) don’t question the information that can affect the price like a
Fundamental Analyst but believe that price movements are not totally random, and
prices move in trends. TA’s use charts to look at trends in the past and assume
that prices will behave the same way as in the past under similar circumstances.

It is important that every beginner to intermediate trader follow and have a sound
understanding of technical analysis, which would mean avoiding taking counter
trend trades, one of the foremost reasons for amateurs blowing up their trading
accounts.

A hidden gem for everyone looking to learn the basics of Technical Analysis, and
available completely free on the NSE website is: NCFM workbook on Technical
Analysis. The book starts of with an introduction to technical analysis and
candlesticks just enough to not bore a beginner, goes onto pattern study like Head
& Shoulder, Indicators and Oscillators like EMA and RSI, and introduction to Dow
and Elliot wave theory. It also has a very interesting section on trading
psychology, and risk management with introduction to concepts like Stop-loss and
Risk Reward Ratio.

I would give this a 4.5/5 and would say is a must read for all beginner traders.

So before you spend another penny on a new book,make sure you download and read up
the NCFM workbook on Technical Analysis.

Happy Learning,

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Nithin Kamath

CEO @ Zerodha and partnering startups through Rainmatter to help grow and improve
the capital market ecosystem in India. Love playing poker, basketball, and guitar.
@Nithin0dha on Twitter.
59 comments
 Rajesh V says:
November 23, 2013 at 1:16 pm

Thanks Nithin
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Reply
satishreddy says:
November 23, 2013 at 2:21 pm

GIVE ME AN EXAMPLE i.e Price discounts everthing….

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Nithin Kamath says:
November 23, 2013 at 3:10 pm

Price discounts everything is what technical analysts believe…

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Kiran Patrudu says:
August 19, 2016 at 8:54 am

Hi guru.. I need information about Sbi merging. I thought Sbi share

will increase today. Can I buy before 9:20 am. Because after 9:20 the price may
increase.
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Reply
Nithin Kamath says:
August 19, 2016 at 9:31 am

Ah no, doesn’t work that way. All corporate actions will have a
record date, whoever is holding stocks on that day will get benefit. Also, it is
not as simple.
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Reply
Kiran Patrudu says:
August 19, 2016 at 4:37 pm

How can we RBL IPO through Zerodha. Is it exist or not

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Nithin Kamath says:
August 20, 2016 at 1:10 am

We don’t have an online IPO platform. But you can mention

your Zerodha demat ID and fill up the physical IPO form.
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Reply
Vishal kashyap says:
July 27, 2017 at 9:25 pm

can we apply for ipo through ASBA via Net Banking?

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Reply
rajath says:
November 23, 2013 at 7:00 pm

thank you very much for the update

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Reply
 GirishSrikantiah says:
November 24, 2013 at 5:02 pm

Thank You Nithin for creating Zerodha in Indian Financial Service Sector
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Arun D Tamannavar says:
December 16, 2013 at 5:56 pm

Its really a fantastic book. I was supposed to join technical analysis workshop
by paying 20K. I came across NCFM program and while browsing NSE site I got
download link for this. I just jumped on it and lo – there is no need to join
workshop.
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Reply
Mantu says:
May 16, 2020 at 9:09 am

hi
You read this in dec 2013 and i read this in last week. I want to know from
you , Have you made money by using the technique given in NCFM ? Can i also use the
same technique properly to make money.
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Reply
RV1000 says:
May 25, 2014 at 11:34 pm

Hi Nithin, Thank you. Also let please let me know if you have come across a
similar book on options!
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Nithin Kamath says:
May 26, 2014 at 1:38 pm

Check out the equity derivatives module:

http://www.nseindia.com/education/content/module_ncfm.htm
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sunil says:
May 29, 2014 at 1:11 pm

hi nithin whr can we find iv of stock options nowadays its not visible in
option chain of nse website
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KS says:
June 2, 2014 at 7:20 pm

The download link above does not work. Is there a new link?
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Nithin Kamath says:
June 2, 2014 at 8:14 pm

Yeah, seems to be removed, we might have a copy, will have it uploaded soon
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KS says:
August 1, 2014 at 10:46 pm
 Did you get a chance to upload?
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Reply
Nithin Kamath says:
August 2, 2014 at 12:44 am

Unfortunately NSE has removed the link, we will try to source this
and put it up as soon as possible.
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Nithin Kamath says:
August 2, 2014 at 4:53 pm

Check this link: http://zerodha.com/z-connect/wp-

content/uploads/2014/06/TA_wrkbk.pdf
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KS says:
August 4, 2014 at 10:26 pm

Thanks Nithin!! Are there any good references for commodity

trading?
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Nithin Kamath says:
August 5, 2014 at 8:05 am

I think the best bet is to google for commodity of your

interest.
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Sunil says:
August 22, 2014 at 7:38 pm

Is this book or same pdf book available in hindi? or any TA book in hindi, if
available please provide me link or name of book
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Reply
Varughese K Eappen says:
September 12, 2014 at 3:51 pm

Is there any online training course on trading/Technical Analysis. If so please

inform.
I live near Kochi and I don’t think there are any quality training course in
Kerala.
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Reply
Varughese K Eappen says:
September 12, 2014 at 4:56 pm

Hi Nithin,

The link you shared:

http://www.nseindia.com/education/content/module_ncfm.htm ,
mentions of certification exams. If we make payment for the module are we only
eligible for the certification exam or do we also get training material for the
course?
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 Reply
Nithin Kamath says:
September 12, 2014 at 5:34 pm

You get the training module and also get to take the certification exam.
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Reply
Shashi Karkhanis says:
January 10, 2015 at 11:27 am

Hi Nithin,

I am very much impressed by people like you. I am also a Trader since last 2
years & enjoying my Trades on Nifty. I used to deal in Futures but since last 6
months now deal in only Nifty Options. I take Directional movements & mainly use
Trail SL in almost all my Trades. Lot of my friends use Strategy planning in
Options. I wanted to know your opinion about this ? Do you think Directional
movement is Better or Strategy Hedging / Planning is better in Options ? Thanks !!
¶
Reply
Nithin Kamath says:
January 10, 2015 at 11:52 am

Shashi, I think it depends on what you understand better and are good at
doing. Arbitrage or exotic option strategies, is not something that every person
appreciates. This also requires a much higher level of understanding of options
pricing, and access to advance tools. I’d say give a shot at reading this section
to begin with, http://zerodha.com/z-connect/category/queries/stock-and-fo-
queries/option-greeks
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Reply
Shashi Karkhanis says:
January 11, 2015 at 9:28 am

Hi Nithin,

Thanks for your Reply.

Yep I had read about these strategies before also. Its very well explained in
Layman terms in Zerodha Column. But I find them Extremely difficult to understand &
work on them. Probably a Detailed study in future will help me (If I choose to
trade in this manner). But directional movement is working better (with little
risks also involved) as I understand Demand & Supply zones very well in certain
Time Frames.

What you have mentioned is Extremely correct, It’s better to stick to what I
enjoy the most & good at doing. I would love open an account with Zerodha also. I
stay in Mumbai, are you people operational in Mumbai also ?

Thanks again for your Prompt Reply.

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Reply
Nithin Kamath says:
January 11, 2015 at 12:13 pm

Shashi, We are online, so we are everywhere. 🙂 But yes, we have our sales
partners in Mumbai who can help you get started with us. Our own team is also
looking at setting up a sales team in Mumbai soon. Will get someone from our team
to email you the account opening details.
 Cheers,
¶
Reply
Shashi Karkhanis says:
January 11, 2015 at 12:41 pm

Thank you Nithin !!

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prema says:
September 25, 2015 at 3:10 pm

hi i want to gain some knowledge about mcx basemetal and energy for day trading
can u pl suggest me some?
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Nithin Kamath says:
September 25, 2015 at 5:49 pm

We will soon start building some commodity content on Varsity as well.

Check this: http://zerodha.com/varsity/
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Reply
Adhik says:
November 14, 2015 at 11:48 am

hi Nithin..
you have interviewed so many traders…based on that and as per your knowledge,
which 2-3 books you would recommend for TA, money mgt. etc that must be read by the
traders..
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Reply
Nithin Kamath says:
November 14, 2015 at 4:18 pm

Check this http://zerodha.com/z-connect/zerodha-60-day-

challenge/winners/mr-consistent-returning-incredible-returns, Madan has suggested
some great books.
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Reply
Rachit says:
December 9, 2015 at 10:18 am

Hi Nithin,
It’s really been great expirenc here at zerodha
Can u suggest some good books on advanced option strategies or advance
derivative analysis

Tans a ton in advance

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Reply
Nithin Kamath says:
December 9, 2015 at 12:20 pm

Rachit, have u seen the options module here: http://zerodha.com/varsity/

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Rachit Jain says:
 December 9, 2015 at 1:41 pm

Oh yes Nithin, it was really helpful, but i would like to read more
about options and advance option strategies and Futures & lot more
It would be great if you can suggest some good stuff to read.

Thanx
¶
Reply
Nithin Kamath says:
December 9, 2015 at 3:30 pm

Check this link http://tradingqna.com/754/which-are-the-top-books-

one-should-read-become-better-trader, has list of some really good books.
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chandrasekhar kara says:
May 21, 2016 at 10:27 pm

Greetings,
i have just joined zerodha.previously i was trading on ventura.i have also some
experience with sharekhan & icici direct but comparatively zerodha is
awsoooooomeeee.
since i am totally new to trading i except some experience,advise,knowdge from
u.
¶
Reply
Adnan says:
June 1, 2016 at 6:43 pm

Thanks a Lot Mr. Nithin Kamath,

Hatsoff to you.
You have great art of writing.
Your blogs are easy to understand.
Great initiative learn and earn.
Keep educating us.
¶
Reply
Nithin Kamath says:
June 1, 2016 at 9:08 pm

You should check out: http://zerodha.com/varsity/. Karthik is so much

better 🙂
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Reply
praveen says:
July 31, 2016 at 10:12 am

Thanks nithin. plz also suggest from where can i get hindi version of this
technical analysis ncfm book. As nse refused and the downloaded were in english.
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Reply
Nithin Kamath says:
July 31, 2016 at 10:22 am

hmm.. I guess you have to enroll for NCFM, so you will have an option to
receive the book in hindi
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Reply
 praveen says:
July 31, 2016 at 10:19 am

& one more thing can i provide stock analysis tips professionally just by
passing this small exam or in india one should have to pursue any mba economics
degree for becoming a technical analyst. plz share the information i m serious in
makibg my career in this field.
¶
Reply
Deepak says:
October 9, 2016 at 10:40 pm

I have Zerodha a/c

I m holding BEL shares

I dint get offer for buy back, but I want to sell my holding as buy back to
company.

How can i do so using my zerodha a/c

¶
Reply
Venu says:
October 10, 2016 at 9:17 am

Please write to [email protected] and you ll get the required

information.
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Reply
Rahul Dhoka says:
November 24, 2016 at 7:28 am

Hi Nithin,

Just a small request, in both Kite and Pi as a technical tools we have only
fibonacci retracement but we don’t have fibonacci extension… When can we expect the
same in the technical tool..
¶
Reply
Nithin Kamath says:
November 24, 2016 at 9:57 am

Rahul, when you add fib extension on Kite, in setting you can set lines at
over 100%. These are essentially fib extensions.
¶
Reply
dheeraj gole says:
December 22, 2016 at 3:52 pm

sir i m also submit my all documents for open my trading and demat acount , my
trading acount is open bt my demat acount is not open and i m not unable to nse and
bse segment for trading so plese sir help m……
¶
Reply
Venu says:
December 22, 2016 at 7:43 pm

Equity segment has been enabled already.

¶
 Reply
Roshan Sarukte says:
June 11, 2017 at 1:27 am

Hello
Mr Nitin
Myself Roshan
21 year old
I have your NCFM PDF
Can you help me out how with cracking exam by giving details of examination
mode and important question also mock practice of test
Where do I find the practicing of test ?

Please help me out

Warm regards

Roshan Sarukte
¶
Reply
Nithin Kamath says:
June 11, 2017 at 2:39 pm

Hey Roshan, don’t have access to what you asked. Quite an easy exam it is,
make sure to read it up well. Best.
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Reply
Arghya Das says:
June 22, 2017 at 12:33 pm

Hi Can You Please Provide Download Link For NCFM Workbook On Fundamental
Analysis?
¶
Reply
Gautam bhardwaj says:
September 4, 2017 at 7:11 pm

A big pain in just opening account customer care no is of no use Mr Kamat

should himself call and see the customer care ,how to open a account with zerodha
can any one resolve my problem
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Reply
Nithin Kamath says:
September 4, 2017 at 8:36 pm

Sorry about this Gautam, having it checked.

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Ajit Kumar says:
September 23, 2017 at 11:30 am

Hi Nithin,

Can you please suggest good books for stocks for intermediate level? I am going
through Intelligent Investor and i am enjoying a lot 🙂

Thanks,
Ajit
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 Reply
Nithin Kamath says:
September 23, 2017 at 4:00 pm

Check this: https://tradingqna.com/t/which-are-the-top-5-books-one-should-

read-to-become-a-better-trader/200. Also suggest you to go through
https://zerodha.com/varsity/
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Reply
Harshit says:
February 16, 2019 at 1:19 am

Can any body tell me that if I qualify the ncfm technical analysis module can I
introduce my self as technical analyst certified by sebi and share my view on
stock?
Or I can add this tag as my designation.
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Reply

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