3. Dow Theory | Objective of the Dow Theory
The goal of the theory is to determine changes in the primary, or major, movement of the market. Once a trend has been established, it is assumed to exist until a ...SkiptomaincontentTechnicalAnalysisExplained,FifthEdition:TheSuccessfulInvestor'sGuidetoSpottingInvestmentTrendsandTurningPoints,5thEditionbyMartinJ.PringGetTechnicalAnalysisExplained,FifthEdition:TheSuccessfulInvestor'sGuidetoSpottingInvestmentTrendsandTurningPoints,5thEditionnowwithO’Reillyonlinelearning.O’Reillymembersexperienceliveonlinetraining,plusbooks,videos,anddigitalcontentfrom200+publishers.Startyourfreetrial3DOWTHEORYIntroductionTheDowtheoryistheoldest,andbyfarthemostpublicized,methodofidentifyingmajortrendsinthestockmarket.Anextensiveaccountwillnotbenecessaryhere,astherearemanyexcellentbooksonthesubject.Abriefexplanation,however,isinorderbecausethebasicprinciplesoftheDowtheoryareusedinotherbranchesoftechnicalanalysis.Thegoalofthetheoryistodeterminechangesintheprimary,ormajor,movementofthemarket.Onceatrendhasbeenestablished,itisassumedtoexistuntilareversalisproved.Dowtheoryisconcernedwiththedirectionofatrendandhasnoforecastingvalueastothetrend’sultimatedurationorsize.Itshouldberecognizedthatthetheorydoesnotalwayskeep...GetTechnicalAnalysisExplained,FifthEdition:TheSuccessfulInvestor'sGuidetoSpottingInvestmentTrendsandTurningPoints,5thEditionnowwithO’Reillyonlinelearning.O’Reillymembersexperienceliveonlinetraining,plusbooks,videos,anddigitalcontentfrom200+publishers.Startyourfreetrial