Dow theroy is the old and base for the technical analysis
- : technical framework that predicts the market is in an upward trend if one of its averages advances above a previous important high, accompanied or followed by a similar advance in the other average.
- : Line charts, Duration: minimum 2years, trend duration: 2months
- : based on High bottom - High top = Up trend Low Top -Low Bottom = down trend
- : it does not explain the price behavior of the stock/securities. But still the Dow theory remains on the top as the core of the Dow theory analysis considers supply – Demand which plays the key role in the technical analysis.
- : High bottom - High Top = buy , Target = hight top - stop loss, stop loss = previous top low top- low bottom = sell, target = low bottom - bottom, stop loss = low top
- : Support = The price would sustain at that particular area, mostly it would never below it Resistance: It price mostly never breakout that price, is tit reaches the price,it comes down