What are the major critics against Dow Theory? How come it remains on top of any analysis?

[EQSIS]

What are the major critics against Dow Theory? How come it remains on top of any analysis?

[Abirami Duraisamy]

Dow theory provides only directional indication and only for the longer duration(2 Months) and does not indicate the shorter reflections in the market.

But this theory is top of analysis, since it is proven for many years and good for deriving the trend easily.

[Pradeep]

The major draw back of Dow theory is, it does not explain the price behavior of the stock/securities. But still the Dow theory remains on the top as the core of the Dow theory analysis considers supply – Demand which plays the key role in the technical analysis. All theories that have evolved today has taken Dow theory as their base and no one could contradict his theory.

[khushi]

dow theory tells us only the direction and not but not the time frame or price for exit or entry. it remains at the top for it was the first theory being established to know the trend in the market.

[bhavani]

Dow theory can only identify the trend but cannot forecast the price movement for intraday or other short term trading. Since it is the one theory which explained the demand and supply long before in the 19th century it remains top of any analysis.

[Author]

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