#lower bottom

This session give the knowledge about Demand and Supply and where is the Entry level , where is the Stoploss , how to identify the current market trend . If follows dow theory which problem will face. I understood of Golden concept.

7. Actually LINE CHARTS are best for analysing the DOW Theory. Minimum look up period is the last 2 months. For trend forecasting, 2 years data is required for perfect forecasting. Should buy during higher bottom, higher tops and sell during lower top, lower bottoms. The trend will be reliable 3 to 4 months.

Demand and supply plays the major role to create the theory of market and life.

Day 5 – Dow theory

Dow theory is very old method of finding the price trend of any stock using the line charts. it uses the line chart and 2 years data is required to forecast the trend.

Charles H Dow was the inventor of the dow theory. Its the first system of forecasting the market trend with the help of price and volume. Getting a daily chart of 2 years data we have to mark the major tops and bottoms as Higher top ,Higher bottom and lower top, lower bottom, HB and HT is a sequence where idf the volume is high then the trend will be bullish .LT and LB is a sequence with a high…

Dow Theory: Old but always Gold

Dow Theory forms the basis of modern day technical analysis. The whole theory is based on simple supply and demand pattern that arises in the market. Since the market discounts everything, dow theory becomes very important to find possible buy and sell zones. A technical chart with miminum of 2 years of data is needed to plot higher tops, higher bottoms, lower tops and lower bottoms. Dow theory…

Dow theory is used to find the general trend of the price movement by considering the demand and supply only. It needs about 2 years of data to be plotted in a line graph. And identify sequences to find the trend as bullish or bearish

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…