Dow

Dow theory It was developed by Dow by analysing various charts. To assess if a stock s going to go upwards or downwards by various theories which were developed by research. You can assess the trend by marking tops and bottoms. Higher top and followed by higher bottom is a bullish trend. Lower top, lower bottom is bearish trend.

• What is Dow Theory?: It was developed by Dow by analysing various charts. To assess if a stock s going to go upwards or downwards by various theories which were developed by research.
• What type of charts used, minimum look up period, duration of trend forecasting for Dow Theory?: Line chart is used. Minimum ook up period is 2 years. Duration of trend forecasting is 2-3 months.
• How to determine the market trend using Dow Theory?: by marking tops and bottoms. Higher top and followed by higher bottom is a bullish trend. Lower top, lower bottom is bearish trend.
• What are the major critics against Dow Theory? How come it remains on top of any analysis?: Short term trading is difficult with dow theory. Entry and exit is not well defined.
• When to buy and sell using Dow Theory? For how long the trend will be reliable?: higher top, higher bottom - buy....lower top lower bottom then you sell
• What are Support and Resistance?: The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling. The support price is a price at which one can expect more buyers than sellers. Likewise, the resistance price is a price at which one can expect more sellers than buyers.