Dow theory is the basis of today’s age fundamental analysis. Dow predicted the major trends in market using the overall health of market environment. dow theory is still reliable even after 100 years. it can give signals of bearish and bullish trend. in a bullish trend i.e. when market makes continuous higher tops and higher bottoms one should buy above previous high. in a bearish trend i.e when market makes continuous lower lows and lower tops one should go short below previous low. the trend will be reliable for 2-3 months.
Dow Theory: Step 1 for Technical Analysis
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Stock Analysis
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