Basic analysis technique that can be used to make decisions seeing the chart if its upward and downward and where is the price expected to stop if the chart is stable.
- : Dow theory is a theory that says a market is an upward trend if one of the averages advances above a previous important high
- : (Doubt)!!!
- : Primary trend - upward direction its uptrend if downwards then its downward trend. Secondary trend- pull back then its secondary trend Minor trend- Against the direction of the Secondary trend
- : Dow theory only tells us the direction but not the timeframe or price of entry or exit. its successful as its been used from a very long time and has been very successful
- : when demand is greater or stronger than supply then buy. if supply greater or stronger than demand then sell. the trend is reliable till the pattern is intact
- : Support is a price level where the decreasing price of a share is expected to pause due to the increase in the buying because of the drop in price. Resistance is a price where the shares are sold due to the increase price.