The Dow theory is a financial theory that says the market is in an upward trend if one of its averages advances above a previous important high and is accompanied or followed by a similar advance in the other average.look at minimum 2 year timeline . the best one to use for charts r line chart because it is easy to look at top and bottom which are important to do dow theory.when demand is greater or stronger than supply then buy. if supply greater or stronger than demand then sell. the trend is reliable till the pattern is intact

  • : The Dow theory it says the market is in an upward trend if one of its averages advances above a previous important high and is accompanied or followed by a similar advance in the other average
  • : look at minimum 2 year timeline the best one to use for charts r line chart because it is easy to look at top and bottom which are important to do dow theory
  • : take 2 year data mark the top and bottom determine which r bottom ,top,high top,high bottom,low top,low bottom We can determine if the current trend is in uptrend when there are higher bottoms followed by higher tops We say there's a downtrend or bearish trend when there are lower tops followed by lower bottoms.
  • : Dow theory provides only directional indication and only for the longer duration and does not indicate the shorter reflections in the market. But this theory is top of analysis, since it is proven for many years and good for deriving the trend easily.
  • : when demand is greater or stronger than supply then buy. if supply greater or stronger than demand then sell. the trend is reliable till the pattern is intact
  • : support and resistance are certain predetermined levels of the price of a security at which it is thought that the price will trend top and reverse
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