Learning on dow theory & how to use it.
Recently Active Members
Bullish View
Bearish View
-
Bearish-GAP-SHORT-BICON-25-10-2019 October 25, 2019
-
FEDERAL BANK – BEARISH ENGULFING October 17, 2019
-
Cummins India – Bearish Engulfing – 24Sep19 September 25, 2019
-
Day29-Tata Motors DVR – Bearish Piercing – 12Sep19 September 12, 2019
-
Day27-Bearish-Engulfing pattern-Tech Mahindtra-09Sep19 September 10, 2019
In order to forecast the trend for Dow theory, the line chart is better to use with minimum lookup period of two years. It should be a daily chart also with volume information.
Support and resistance represent key junctures where the forces of supply and demand meet.
A support line refers to that level beyond which a stock’s price will not fall. The support line is formed because, at this price, a lot of buyers take a long position because they feel that the price is good to buy. In the Support line, the demand is more than supply and that price zone is called demand zone from where the price starts moving up.
Similarly, a resistance line refers to that line beyond which a stock’s price will not increase. Because at this zone, the sellers come into the picture as they feel that the price is a good price to sell. This is called resistance or supply zone.