Importance of Dow Theory » EQSIS PRO | Objective of the Dow Theory
With the Dow theory an analyst can identify the tops and bottom of a stock and can make sure whether the stock stock trending or not. Also the ...TogglenavigationPracticeChartsMentoringTaskMarketStudyPublishyourBullishViewPublishyourBearishViewLoginMyActivitiesPublishyourstockviewImportanceofDowTheoryHomeImportanceofDowTheoryfeelfreetocallus +919500077790 [email protected],January1,2018January1,2018,DowTheory,demandandsupply,dowtheory,Highertopandhigherbottom,lowertopandlowerbottomImportanceofDowTheoryanditsbehavior.WithDowtheoryonecanstayinthepositionforlongertimealsoitisagoodrepresentationofdemandandsupply.WhatisDowTheory?:Dowtheoryisusedtoobservethepricemovementsofastockthroughthechartswithminimum2yearsduration.WiththeDowtheoryananalystcanidentifythetopsandbottomofastockandcanmakesurewhetherthestockstocktrendingornot.AlsothemainobjectiveofDowtheoryistoidentifythetopsandbottomofthestock.Whattypeofchartsused,minimumlookupperiod,durationoftrendforecastingforDowTheory?:AnAnalystcanuseminimum2yearsofchartasalookupperiodinDowtheory..HowtodeterminethemarkettrendusingDowTheory?:Byidentifyingatopandbottomofastockusinglinechart.Thetopsandbottomswillberepresentedasahighertopandhigherbottom.Here,highertoprepresentmoresupplyandhigherbottomrepresentsmoredemand.Eg:IfaDemand>supplythenonecangoforlongIfaDemandSupply-->Golongstayinpositionuntiltheprevioushigherbottomwascrossedbythenewlowertop.WhenDemand