When to buy and Sell using Dow Theory?

[canute]

 

Buy : Bullish Higher Top Sequence, Higher Bottom, High volume.

Sell : Bearish Lower Top, Lower Bottom Sequence, with High Volume.

[Ganesh Ramanan]

Buy – Higher bottom to higher top with high volume

Sell – Lower top to lower bottom with high volume

[Dr Faiz]

According to the Dow theory the primary upward trend (Bull market)is characterised by;

1.Accumulation phase

2.Public participation phase

3.Excess stage

The downward trend (bear market) is characterisedby:

1.Distribution phase

2.Public participation phase

3.The panic phase

According to Dow theory after identifying the primary upward trend ,Long position may be considered. It can be held till there is a secondary trend or a pullback and after confirming the market is entering the Distribution phase of a downward trend, long unwinding may be considered.

[sanjaivasan]

Buy – Bullish Higher bottom to higher top with high volume

Sell – Bearish Lower top to lower bottom with high volume

[Ranjani Arumugam]

when there is higher top and higher bottom with an increase in volume – buy.

when there is lower top and lower bottom with increase volume – sell

[Author]

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