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Dow theory can be used for long term investments, but price patterns can be used for short term investments.
Dow Theory is based on the volumes traded and it gives the trend of buyer and seller in the market and daily charts for a duration of two years is required to know the direction of the market for long term investments. Whereas in short term investments we need price pattern and for this also we need volumes traded for a shorter duration and the price pattern so a to take a course correcting action in the market on a day to day basis. Price pattern is good for intraday trading.
Price pattern can be studied for the short term market movement of a particular stock and trend of the stock can be identified, whereas the Dow theory takes a longer time frame and misses out the short term variation of the market trend.
price pattern is used to predict the short term movements on the stock. Dow theory requires minimum 2 years of data to study.
Although Dow theory is the basis for every method in Technical analysis, it can only give information about the market trend. Whereas Price patterns help to understand the characteristics of that trend. They give an early indication of price movement.
Also, Dow theory requires a very long lookup period which is not required in Price patterns.
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