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The major critics against Dow Theory are that it can only be used on long term trading and it tells only about market trend whether it is bullish or bearish based on demand and supply it doesn’t offer insight on price behavior. This theory cant be used on Intra day or short term trading.
Dow Theory still remains on top because it is the base for all other technical analysis.
Dow theory could be used only for long term investment or trading. It is the strongest and most effective analysis for long term trading.
its limitation is that it can not be used for intraday. since it is based on demand and supply it becomes base for much of the theories proposed after that.
The major critics is that it can’t be used for daily or intraday trading since it is good only for deriving the trend ie bullish or bearish and does not offer anything on the pricing behavior.
It is the basic for all the analysis
This theory lacks in characteristics, ie., it says only the market direction is positive or negative, it wont say the stock level will increase/decrease
Need to study stock from longer perspective, it would be useful for long term investors
It is a pretty old analysis method, but results are highly reliable
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