#low 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.…

Dow’s Theory

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

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.

This is really a good questionnaire which helps me to recall all the stuffs which i learned through workshop.