What are the major critics against Dow Theory? How come it remains on top of any analysis?

[Vineet Kumar Nair]

Major critics is that it only tells about market trend whether it is bullish or bearish based on the demand and supply. It doesn’t offer insight on price behavior. Also, it can’t be used for short term trading.

It remains on top of any analysis because it is the base (concept of demand and supply) for all the technical analysis tools.

[Guru]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>The Major critics about Dow theory are this is not suitable for short-term trading( less than 3 months) it only tells about market trend whether it is bullish or bearish based on the demand and supply. It doesn’t offer insight on price behaviour.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Dow theory is a proven one and it produces results more than 100 years with higher success ratio and it is the base ( the concept of demand and supply) for all the technical analysis tools. That is the reason it remains on top of all analysis.</p>

[Sriram Raghavendran]

Dow theory cannot be applied on short term or intraday trading. it needs a chart of 2 years at the least to identify major tops and bottoms.

It remains the easiest way to follow trend and identify demand and supply using volume

[Geena]

Dow theory remains on the top as the core of the dow theory analysis considers supply  – Demand

[Gokul Ramachandran]

Dow theory is for long term. It cannot be used for intraday. It does not allow us to get maximum gain by predictingprice patterns.

It is based on supply and demand and basic for all other analysis

[Author]

Posts