How to determine the market trend using Dow Theory?

[Divya]

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.

[Dipakk Mehta]

Higher bottom – higher top sequence with high volume indicates bullish view where demand is high

lower top- lower bottom sequence with high volume indicates bearish view where supply is greater than demand.

[Vineet Kumar Nair]

Market trend can be determined by identifying the particular sequences in the line chart:

1. Higher bottom – higher top (with significant volume) = Bullish trend

2. Lower top – lower bottom (with significant volume) = Bearish trend

 

[Guru]

<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Take two years data of a company in the form of line chart.</span>

<br style=”box-sizing: border-box; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;” /><span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Mark Tops and Bottoms as per Dow Theory</span><br style=”box-sizing: border-box; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;” /><span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Mark Higher Tops and Higher Bottoms, Lower Tops and Lower Bottoms</span>

<br style=”box-sizing: border-box; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;” /><span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>when the sequence like Higher Bottom and Higher Top comes with significant volume then it is Bullish we should go for long</span><br style=”box-sizing: border-box; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;” /><span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>When the sequence like Lower Top and Lower Bottom comes with significant volume then it is Bearish we should go for short.</span>

[Sriram Raghavendran]

Market trend can be determined by identifying the particular sequences in the line chart:

1. Higher bottom – higher top (with significant volume) = Bullish trend

2. Lower top – lower bottom (with significant volume) = Bearish trend

[Author]

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