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TREND IS FRIEND

The Dow Theory is a technical framework that predicts the market is in an upward trend if one of its averages advances above a previous important high, accompanied or followed by a similar advance in the other average.
The theory is predicated on the notion that the market discounts everything in a way consistent with the efficient markets hypothesis.
In such a paradigm, different market indices must confirm each other in terms of price action and volume patterns until trends reverse.

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