Dow theory was derived by Charles.H.Dow, this is old but a golden concept. This theory is derived by price patterns i.e., with market behaviour. This theory can can be analysed with minimum 2 years chart. With this, we can do 3 to 4 months trade.
The price patterns are derived by demand and supply, we need to spot tops and bottoms, where the higher bottom and higher top represents bullish trend, whereas the lower top and lower bottom represents bearish trend, but we should need to conform with volume.
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Hi sir,
This will be the appropriate answer for the question What are Support and Resistance?:
Support and Resistance are the two levels
Support is when the price bounces after a downfall i.e. price increases after a decrease, in this level buyers buy their stocks
Resistance is when the price reverses after a rise up i.e. price decreases after a increase, in this level sellers sell their stocks