Dow theory can only identify the trend and follow the market. 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 . because it’s proven as best method compare than other methods.From the price chart of 2 yrs, we have indentify the high top and high bottom.Next find the sequence like H.B to H.T and L.T to L.B . The first sequence is bullish and we can buy at distance nearly equal to previous top and stop-loss is H.B the second sequence L.T to L.B is bearish trend and we can sell the distance at below the previous bottom. Stop-loss is next L.B . For both the cases we must find the volume on the entry position.
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