#high bottom

Basics Of DOW Theory for new bies

According to Dow an uptrend is consistently rising peaks and troughs. And a downtrend is consistently rising lowering peaks and troughs. Here the line chart is used to mark the high tops & bottoms .The minimum look up period one to two years.

support and resistance are certain predetermined levels of the price of a security at which it is thought that the price will tend to stop and reverse.…

Ramesh’s learning on Dow Theory

Dow Theory (Dow Jones Theory) is a trading approach developed by Charles Dow. This is used to understand the trend of the market/share. To understand the trend of a market/share using Dow theory, minimum 2 years data period to be considered using line charts. During the Bearish trend BUY (Long position) order to be executed. During the Bullish trend, SELL (Short position) order to be executed. At…

DOW THEORY- OLD IS GOLD

Dow theory is one of the oldest technical tool, still used by many for analyzing the market trend. It is used vastly by traders for positional trading. The market trend is forecasted by using demand and supply along with traded volume. Of all the charts line chart is best suited for Dow theory, a minimum period of 2 years chart is need for this purpose.

Dow Theory is helpful to know how the market trend duration in another 3 to 6 months period but its not helpful for short term or intraday trading. High Bottom & High Top signifies Bullish trend and Low Top & Low Bottom signifies Bearish Trend.

Dow theory is perhaps the first analysis used in Technical Analysis by Charles H Dow. Dow theory helps to identify the market direction. One will need at least 2 years EOD charts, to analyse the tops/bottoms, qualify higher top,higher bottom,lower top,lower bottom. HB-HT of Bullish and LT-LB is Bearish signal. Dow theory only helps to identify the market trend and not the price action for which…

Dow’s Theory

This discusses about Dow theory and its rules to predict bullish/bearish conditions.

Dow Theory is propounded by Charles H Dow. It is aimed at analyzing the movement of the market. For this, Line charts are used, minimum look up period is 2 years, duration of trend forecasting for dow theory is also 2 years. We need to find the High Bottom – High Top with volume combination for a bullish view, Low Top and High Bottom Combination with volume for a bearish view.

In summary Dow theory is an old theory which tries to spot trends to determine demand and supply. However the Dow theory provides information very late and hence is not entirely reliable . But the basis for most analysis is from Dow theory Any trend upward or downward must be supported by high volume or such a trend is meaningless.