Dow Theory principles can be applied to charting from "summary" of Charting and Technical Analysis by Fred McAllen
The Dow Theory is a foundational principle in technical analysis, providing insight into market trends and price movements. By understanding and applying the principles of the Dow Theory, traders and investors can make more informed decisions when analyzing charts. The Dow Theory emphasizes the importance of market trends, stating that markets move in three primary directions: uptrend, downtrend, and sideways. By identifying these trends on a price chart, traders can determine the overall direction of the market and adjust their strategies accordingly. One of the key principles of the Dow Theory is the concept of confirmation. This principle suggests that in order for a trend to be considered valid, both the main trend and the secondary trend must confirm each other. By looking for confirmation signals on a price chart, traders can validat...
Similar Posts
Tweezer tops and bottoms show potential price reversals
Tweezer tops and bottoms are formed when two or more consecutive candlesticks have highs or lows that are nearly equal. Tweezer...
The future potential of cryptoassets in the financial markets
The future potential of cryptoassets in the financial markets is vast and varied, with numerous opportunities for innovation an...
Keep a trading journal to track your progress
One important habit that every successful trader follows is maintaining a trading journal. This journal serves as a record of a...
Avoid emotional investing
Investing with emotion can lead to poor decision-making and ultimately hurt your financial success. When you let your emotions ...
Learning to control your emotions is a vital skill
Emotions play a significant role in trading. They can make or break a trade, leading to either success or failure. As a trader,...
Stay motivated and committed to your journey towards financial success
To achieve financial success, you must maintain unwavering motivation and commitment throughout your journey. It is essential t...
International financial crises can have farreaching consequences
International financial crises can have far-reaching consequences that extend beyond borders and impact economies worldwide. Th...