Dow derived the concept of demand & supply through price movements. Dow theory is more useful for deriving the trend ie,trend is either bullish or bearish.
Steps involved in dow theory
*First we need to spot the major tops and bottoms in the daily chart with 2yrs of data.
*Higher bottom – high top – high volume -> Bullish trend (positive)
*Lower top – lower bottom – high volume ->Bearish trend (negative)
Dow theory failed to explain the price patterns so this can’t be used for intraday trading/weekly trading.