dow theory helps up in analyzing the trend ,it tells about price and volume & demand and supply .line chart is used . for forecasting dow theory we minimum need two years charts.by spotting major high top ,high bottom ,lower top,lower bottom.and by seeing the volume of the market.dow theory cant be used on intraday ,dow theory can only give idea about market ,it gives the basis of all patters .high bottom and high top we can buy and create long position
lower top and lower bottom we can sell and create short position
but both sequence needs high volume
, , Dow Theory, buy, daily charts, long, sell, short
what are support and resistance?
Using Dow theory the support and resistance can be found in long term charts. The Demand zone / supply zone are considered as support and resistance respectively.
The qualified Bottoms and Tops are used as support and resistance