Dow theory helps to identify the market direction. Supply and Demand zone. Dow theory is perhaps the first analysis used in Technical Analysis by Charles H Dow. Dow theory helps to identify the market direction. One will need at least 2 years, EOD, line chart to analyse the tops/bottoms, qualify higher top,higher bottom,lower top,lower bottom. HB-HT of Bullish and LT-LB is Bearish signal. Dow theory only helps to identify the market trend and not the price action for which price pattern/candlestick analysis used further.