The Dow theory is an approach to trading developed by Charles H. Dow to identify the demand and supply zone and determine the market trend.
Follow the below steps to be determine the trend of the security:
* Take daily line charts with 2 years of historic data
* Mark the tops and bottoms in the chart
* Identify the Higher Top(HT), Higher Bottom(HB), Lower Top(LT), Lower Bottom(LB)
* Look for sequence with significant volume at breakout point
* If the sequence is formed with HB and HT – Bullish
* If the sequence is formed with LT and LB – Bearish
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