How to determine the market trend using Dow Theory?

[kanakaraj]

Bullish Trend can be determined by using higher top followed by higher bottom sequence with high volume.
Bearish trend can be determined by using lower top followed by lower bottom sequence with high volume.

[Padmavathi Sukumar]

Using dow theory market trend can be determined as follows:

Lower top lower bottom sequence with significant volume – bearish – create short position

Higher top higher bottom sequence with significant volume – bullish – create long position

[KRISHNA KUMAR MS]

Bullish Trend can be determined  – if we see higher top followed by higher bottom sequence with high volume.
Bearish trend can be determined  – if we see lower top followed by lower bottom sequence with high volume.

[Lakshmisudha R]

Take two years data of a company in the form of line chart.

Mark Tops and Bottoms as per Dow Theory

Mark Higher Tops and Higher Bottoms, Lower Tops and Lower Bottoms

when the sequence like Higher Bottom and Higher Top comes with significant volume then it is Bullish we should go for long

When the sequence like Lower Top and Lower Bottom comes with significant volume then it is Bearish we should go for short

[Ravishankar]

Min 2 years data required

Identify the top and bottom, mark the higher and lower

High bottom-High top- with volume =  Bullish , take long position

Low top- low bottom- with volume = Bearish, take short position

[Author]

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