Stock trading is to buy or sell the stocks. The basic idea of Dow Theory is that market price action reflects all available information and the market price movement is comprised of three main trends.
The basic principles of Dow’s theory are:
1. The Averages Discount Everything.
2. The Market Has Three Trends – i) Primary trend
ii) Secondary trend
iii) Minor trends
3. Major Trends Have Three Phases.
i) Accumulation phase
ii) Public participation phase
iii) Distribution phase
4. The Averages Must Confirm Each Other.
5. Volume Must Confirm the Trend.
6. A Trend Is Assumed to Be Continuous Until Definite Signals of Its Reversal.
If a trend is bullish, it will have Higher Bottom – Higher Top Sequence with high volume. If a trend is bearish, it will have Lower Top – Lower Bottom Sequence with high volume.
In the bullish trend, when the price movements go above the previous top, the stock have to be bought. In the bearish trend, when the price movements go below the previous bottom, the stock have to be sold.
Dow Theory
feel free to call us +919500077790 info@eqsis.com
0 Comments
Stock Analysis
M | T | W | T | F | S | S |
---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | 5 | ||
6 | 7 | 8 | 9 | 10 | 11 | 12 |
13 | 14 | 15 | 16 | 17 | 18 | 19 |
20 | 21 | 22 | 23 | 24 | 25 | 26 |
27 | 28 | 29 | 30 | 31 |
Bullish View
Bearish View
- Bearish-GAP-SHORT-BICON-25-10-2019 October 25, 2019
- FEDERAL BANK – BEARISH ENGULFING October 17, 2019
- Cummins India – Bearish Engulfing – 24Sep19 September 25, 2019
- Day29-Tata Motors DVR – Bearish Piercing – 12Sep19 September 12, 2019
- Day27-Bearish-Engulfing pattern-Tech Mahindtra-09Sep19 September 10, 2019
How this forum help stock traders?
Stock Trading is business, the success depends not just on capital or subscribing advisory services or participating workshops. The factors such as your awareness level about business, Efforts and your contributions, Smartness, Knowledge in analysis and trading instrument, availability of infrastructure and emotional control determine your success.