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Tagged: Deamdn, Price, Supply, Technical Analysis
Dow theory is shown the trend based on price movement & volume.
its proven theory for long time.
Dow theory cannot be used to identify the short term price movements. It’s been in use for more than 100 years and still producing reliable results in identifying the price movements.
CRITIC Dow theory is not suitable for intra day trading since fluctuation in extremely short period is beyond the scope of DOW theory
More over dow thory is based on ONLY the closing price of the stock and not the DAY RANGE of the stock on any day
HOWEVER DOW theory is valid even today nay even in future since price is based on DEMAND and SUPPLY which is the golden rule of any market and that is what the foundation of the DOW theory also
Dow theory remains the top of any analysis as the main concepts of demand and supply are used. More than a just a theory, it is also supported logically too. Although the critics say that the prediction cannot be done using the chart, and another main con is that this theory can be used only in the 3 months trading and not the intraday.
dow theory can use only for a short term basis and it can be done by closing price. and because in a recent times america published dow theory has 56% percent success ratio and it is proved more than a 100 years.
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