Dow theory helps traders to understand current market trend
Helps to forecast the upcoming trend for about a month or two
Oldest technique Line chart, with a minimum look period of 2 years is required to do analysis using dow theoryMarket trends are determined by spotting two sequence in the charts HB-HT for a long position and LT-LB for a short position
The presence of higher volume at the previous demand zone for long position and at the previous supply zone for short position is also very necessary for determining the trend using dow theory
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