Dow theory

Dow theory is the thoery which was developed by charles dow in the 2pth century .
The dow theory explains the price patternd and volume patterns which are affected by the market forces of demand and supply.
The dow theory provides the datas for the longer period that is 2 years datas of prwvious years and it lasts and it is reliable for 2 to 3 months with the help of line charts and in the form of graphs.
The dow theory shows a bullish trend when the line chart has higher top and hogher bottom compared to the previous data .The dow theory shows a bearish trend when the line chart shows lower top and lower bottom compared to the previous data.
The support and resistance are the two levels which indicates the price trend and provides support and resistance to the price trend.
The support level is the level im which it provides support to the price trend as because the market prive is going down because of less demand than supply.
The resistance lwvel is the level in which it provides resistance to the price trend when the market price is going up as because there is more demand than supply.