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Dow Theory Simplified
The market moves in a trend & discount all the things in advance
Market has 3 trends
1. Primary Trend,
2. Secondary Trends
3. Minor Trends
There are 3 phases in each primary trend (Bull or Bear)
Trends can be identified with HH-HL or LH-LL
The market moves in a trend & discount all the things in advanceMarket has 3 trends1. Primary Trend,
2. Secondary Trends
3. Minor Trends
There are 3 phases in each primary trend (Bull or Bear)Trends can be identified with HH-HL or LH-LL
Dow Theory Simplified
Primary Trend - Major trend in which market is moving have 3 phases
1. Accumulation
2. Mark Up
3. Distribution
Secondary Trends - These are corrections or pullbacks in primary trend
Minor Trend - Market fluctuations due to sudden news or noise
Primary Trend - Major trend in which market is moving have 3 phases1. Accumulation
2. Mark Up
3. Distribution
Secondary Trends - These are corrections or pullbacks in primary trendMinor Trend - Market fluctuations due to sudden news or noise
Dow Theory Simplified
Accumulation Phase - Here smart investors & traders accumulate the stocks before actual move occurs
Mark Up Phase - Broader market realizes the opportunity & get active in market
Distribution Phase - End of trend with increase in speculation(2018)
Accumulation Phase - Here smart investors & traders accumulate the stocks before actual move occursMark Up Phase - Broader market realizes the opportunity & get active in marketDistribution Phase - End of trend with increase in speculation(2018)
Dow Theory Simplified
Identification of the trend - Trend can be identified when any security is making HH(higher high) - HL(Higher Low) or LH(Lower High) - LL (Lower Low)
Rise in volumes should also be noticed for better confirmation
End of Thread
RT if you learned it
Identification of the trend - Trend can be identified when any security is making HH(higher high) - HL(Higher Low) or LH(Lower High) - LL (Lower Low)Rise in volumes should also be noticed for better confirmationEnd of Thread
RT if you learned it
