When to buy and Sell using Dow Theory?

[Gogaya]

By Dow,

Buy means HB-HT sequence

Sell means LT-LB sequence.

[Nishad]

BUY – Sequence of High Bottom with High Top and High Volume

SELL – Sequence of Low Top with Low Bottom and High Volume

[suraj]

Buy – Higher top with higher bottom

Sell –  Lower top with lower bottom

[Praveen M]

1. Open the daily line chart of a stock. (for minimum 2 years)
2.  Mark the major Tops and major Bottoms.
3.  Classify the tops and bottoms as Higher Top(HT) or Higher Bottom(HB) and Lower Top(LT) or Lower Bottom(LB) in comparison to the previous Top and Bottom respectively.
4.  If a transition from HB to HT (with high volume) is found, then it is a Bullish trend which is suitable to create Long position(buy and sell).
5.  If a transition from LT to LB (with high volume) is found, then it is a Bearish trend which is suitable to create Short position(sell and buy).

[SHREYANS BOTHRA]

Buy –  Higher top and higher bottom. This is called bullish.

Sell – lower top and lower bottom. This is called bearish

 

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