Dow theory is used for finding the current trend (Bullish/Bearish). It can only be used for long term investment.
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Line chart is usually used for Dow theory. The minimum look up period is 2 years. Duration of trend forecasting is two – three months.
If Demand > Supply – Bullish (H.T – H.B) If Supply > Demand – Bearish (L.T – L.B)
One need to buy or sell with flow of the market not against the market according to Dow theory. The trend is good for long term investment.
What are Support and Resistance?: Higher bottom – Higher top or Lower Top – Lower Bottom sequence. High Volume.
Hi,
You did good work