dow thery its old theory invented by charles dow.its nothing but the market directions derived by demand and supply with volumes. here the line chart is required because in dow theory the demand and supply zones are mainly plays a vital role. daily line chart required for to analysis demand and supply zone (min 2 years charts). in charts we need to mark tops and bottoms, then we qualify with marking higher tops and higher bottoms.lower tops and lower bottoms.
higher tops and higher bottoms bullish trend.lower tops and lower bottoms bearish trend.
if price going up and beyond the previous tops long (buy) call required.
if prices going down and go below to the previous bottom short (sell) call required.
, , Dow Theory, dow theory
Hi,
This is an appropriate answer for the question -What are Support and Resistance? support and resistance is a concept that the movement of the price which will tend to stop and reverse at certain predetermined price levels.These levels are denoted by multiple touches of price without a breakthrough of the level.
thank you mr.naresh