- This topic has 307 replies, 303 voices, and was last updated 2 years, 7 months ago by
.
-
Posts
-
1. Open daily line charts for 2 years.
2. Identify major tops and bottoms.
3. Mark them as HT / LT and LT/LB.
4. Find if there is HB-HT or LT-LB pattern.
5. If price breaks previous top or bottom with high volume, create long or short position respectively
Dow theory is analysis between 2 years of chart, by identifying the higher tops, higher bottoms, lower tops and lower bottoms, with the volume level then we predict the long and the short positions.
Load two years of data as line charts and then mark the tops and bottoms.Qualify them as higher or lower tops and bottoms.
Bullish- if the sequence is higher bottom to higher top with significant increase in volume on breakout.
Bearish- if the sequence is lower top to lower bottom with significant increase in volume on breakout.
Take 2 years of data using line chart .Identify higher tops , higher bottoms ,lower tops , lower bottoms .
Bullish-Higher bottom-higher top with heavy volume
Bearish-Lower top – lower bottom with high volume
With years of data identify higher tops ,higher bottom, Lower top, lower bottom
With this we can identify the market is bullish or bearish
the sequence for bullish market is higher top-higher bottom with high volume at the exit
the sequence for bearish market is lower top-lower bottom with higher volume at the exit
- You must be logged in to reply to this topic.
