Dow theory

Dow theory in stock trading.
It is a basic and first concept to identify demand and supply.
It is about, First we have to open a chart use a daily chart for period of 2 years, then we have to identify tops and bottom , then we need to qualify it to higher bottom , lower bottom , higher top and lower top.
If the trend is Higher bottom and higher top with volume then it is bullish go for long position and if a trend of chart is lower top and lower bottom with volume then it is a bearish go for short position.
Dow theory gives an understanding about the demand and supply of the stock alone and doesn’t study any price patterns. It is a very old concept and forms a base to major stock trading concepts and so is reason for it to remain on the top.