dow theory is a old theory but it is still being used in technical analysis it takes data of the stock performance the period of at least two years and we should find out the sequence of HT , HB AND LT, LB which should form in 2 to 3 months with a high volume during this time we should plane our entry and exit
dow theory mother of technical analysis
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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 huge decrease in this level buyers buy their stocks
resistance is when the price reverses after a rise up i.e. price decreases after a huge increase in this level sellers sell their stocks