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Tagged: Dow Theory, stop loss, target
No we cant target and stop loss by using dow theory.
No its not possible to keep target and stop loss, it is mainly used to analyse the market trend only.
With the help of advanced tools and options we can do that, but it is not advisable.
Dow theory gives on +ve/-ve trends . doesnt give nature or charactarstic patterns to identify .Lacks quality of trend to fix target or stop loss.
We can keep target and stop loss as Dow theory analysis has a success rate at marginally more than 50 percent and can be benefited with more trades in a particular period.
In the case of bullish trend of Dow theory, when the price crosses the previous higher top, the target and stop loss can be placed equal to the difference between point at which the price crosses previous higher top and the higher bottom.
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