Learning Dow Theory

Dow Theory is base of all technical analysis. Line charts are used for Dow Theory One has to look back for at least 2 years of data. It can give trend for 2-3 months. But it has some downsides, as entering a trend is late if followed Dow Theory. Also it do not consider price movements as its limitation. One can go for long, as chart creates higher bottom-higher top sequence and go for short if chart creates lower top -lower bottom sequence. Also, one can exist trade if chart breaches support or resistance levels.