Dow Theory is quite old and still valid for today’s contingencies.
Dow Theory laid the foundation for all other kinds of analysis – H & S, Cup, Double Top Double Bottom, Flag, Triangle.
Dow Theory has three trends :
Primary trend – 1 year to 3 years (which is actually suitable for analysis)
Secondary Trend – 3weeks to 3 months (deceptive)
Minor Trend – Less than 3 weeks (not ideal for Dow Analysis, misleading
Follow simple thee rules
– Identify Highs and Lows
– If the second high cuts first high – Buy provided high volume
– If the second low cuts first low- Sell provided high volume
Remember this is atleast for 1 year duration