Understanding the supply and demand zone to confirm the trend of the stock. Dow theory plays an essential role in establish the trend which is vital to place long/short positions.
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Hi,
In response to your question
Your Question 1:: What are the major critics against Dow Theory?
The main criticism of the Dow Theory was that trends were lagging indicators and that by the time the primary trend was confirmed, the primary trend was already in place, and the investor lost part of that move.
Your Question 2 :: What are Support and Resistance?
Support and resistance levels are important points in time where the forces of supply and demand meet. Support is the level at which demand is strong enough to stop the stock from falling any further Meanwhile resistance is the level at which supply is strong enough to stop the stock from moving higher but there is no assurance that the support or resistance will hold.
If a stock breaks through resistance, the old resistance level may become a support level meanwhile If support is violated, then that same level can act as future resistance.