Dow Theory

Dow theory is the oldest theory which is used to decide the market trend. As it explains the Demand and Supply, its the basis for all theories. As per this theory, long position should happen at previous top during HB to HT phase and short position should be created at previous bottom during LT to LB phase. Although as a trader, we wont use it as it will recognize the trend very late and cant be used for short term trading.