#higher tops

Dow Theory – Father of any stock market analysis

Dow theory is the best theory to forecast trend of a market or a stock. Tops and Bottoms derive up trend or down trend. Buy and Sell should take place when clear break out happens above resistance zone and below support zone.

Technical Analysis using ‘Dow Theory’

Basis of stock trading is Buy when the market is Bullish & Sell when the market is Bearish. Short term Trading is when one doesn’t study the company or it’s performance, growth or other financial reports (as with Investing), but rather one does technical analysis to form a trade bias.

Dow theory is an important technical trading theory developed by Chales Dow. The theory operates on the principle of establishing a primary trend using line charts of 2 years duration. Through this theory the trend of the market i.e. bullish or bearish can be established subject to fulfilling of other conditions like sufficient volume and overall trend of indices and the stock/ sector.

OLD but GOLDEN concept – Dow Theory

Dow derived the concept of demand & supply through price movements. Dow theory is more useful for deriving the trend ie,trend is either bullish or bearish. Steps involved in dow theory *First we need to spot the major tops and bottoms in the daily chart with 2yrs of data. *Higher bottom – high top – high volume -> Bullish trend (positive) *Lower top – lower bottom – high volume ->Bearish trend…

Dow Theory – Basics

This section helps in understanding what is Dow Theory, how to perform Dow Theory analysis and identify the demand/supply wiz long/short positions in stock/market.

Dow theory is one of the best theory to understand the trend of the market. A stock is in a bullish run if it is making higher tops and higher bottoms and it is in bearish trend if it is otherwise.

Dow Theory – Demand & Supply

Dow Theory is old but reliable to understand the Demand and Supply trend in long duration.