feel free to call us +919500077790 info@eqsis.com
Tagged: Demand, Dow Theory, oldest theory, Supply
dow theory is a first and most successful theory to determine the demand and supply and he advice go along with the trend not with the market and he said bullish and bearish can be determine by the volume of trading .
Dow theory is an analytical tool which is created in 19th century. This gives information about the market trend.
Bullish: Higher bottom – Higher top with high volume
Bearish: Lower top – lower bottom with high volume
Charles Dow of 19th is the father of Dow Theory.
This theory gave significance to nature of demand and supply while studying about a market
According to this theory study of market is important rather than company
This theory emphasized to go along the market trend by spotting the tops and bottoms in daily charts based on Volume
Dow theory is made up of two equations
1. Higher Bottom – Higher Top – Bullish trend
2. Lower Top – Lower Bottom – Bearish Trend
Dow theory is the most ancient theory for market analysis invented by Charles Dow. It explains to follow market trend and analyze demand vs supply along with volume to do a successful trading.
Dow theory is a technical analysis price forecasting method.
On a line line chart, mark the Higher top,Higher bottom,Lower top,Lower bottom.If the sequence is Higher top-Higher bottom with high volumes – it is BULLISH. , If the sequence is Lower top-Lower bottom with high volumes – it is Bearish.
2years graph is necessary for forecasting the trend
EQSIS, A Stock Market Research Firm
Knowledge is Power. Here you may start from basics, get support while practicing and evolve as active analyst, later you can become a pro