Charles Dow in the year 1900 to 1902, written articles on market in wall street journal. His followers studied it and formed a theory called Dow Theory.
Dow Theory is the base for many modern day techniques. It helps in understanding demand and supply from the price and volume data.
Dow Theory is slow and we cannot predict very short term trends and trades. Behavior of the market cannot be forecasted using Dow.
Trend is determined by Demand and supply. Demand >Supply its Bullish and Demand <Supply its Bearish.
When the price tends to move up and breaks the earlier highs with a high volume then we can conclude it as Bullish Trend.
When the price tends to move down and breaks the earlier lows with a high volume then we can conclude it as Bearish Trend.
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