DOW introduced this theory to study the market to understand the market trend. The theory is based on demand and supply, which can be identified using Price and Volume
The line charts are used for dow theory. Minimum look up period should be 2 year and the duration of trend forecasting can be for 2 months.
It is a concept in technical analysis that the movement of the price of a security will tend to stop and reverse at certain predetermined price levels.
The basics of dow theory
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Stock Analysis
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