Dow Theory and It's Implementation | Learning Financial Markets | Lecture 08 | Patient Wolf

Описание: Learning Financial Markets Lecture 08:
Dow Theory is a theory on stock market analysis that was first formulated by Charles Dow, the founder of the Dow Jones & Company, in the late 1800s. The theory is based on the analysis of stock price movements and is used to predict future market trends.

The basic tenets of the Dow Theory include:

The market discounts everything: According to Dow Theory, the stock market reflects all available information, including economic and political events, market sentiment, and other factors that may affect the price of stocks.

The market moves in trends: The theory states that the market moves in a series of trends, including primary, secondary, and minor trends. The primary trend is the long-term trend that lasts for several years, while the secondary and minor trends are shorter-term movements within the primary trend.

The trend is confirmed by volume: Dow Theory states that the trend in stock prices is confirmed by the volume of trading activity. In other words, if a trend is accompanied by high trading volume, it is more likely to be sustained.

The trend remains in effect until a clear reversal occurs: According to Dow Theory, a trend will continue until there is a clear reversal in the opposite direction. This means that investors should not try to time the market and should instead follow the trend until it clearly changes.

The Dow Jones Industrial Average and the Dow Jones Transportation Average must confirm each other: Dow Theory suggests that the movements of the Dow Jones Industrial Average and the Dow Jones Transportation Average should be analyzed together to confirm a trend. If both indices are moving in the same direction, it is more likely that the trend will continue.

Overall, Dow Theory provides a framework for analyzing the stock market and identifying trends that can help investors make more informed investment decisions.


I love you hear from you guys write your questions and feedback in the comment section. Thank you.

I am working with exness.com as my broker.
If You want to open a real account and support this channel use this link: https://one.exness-track.com/a/s7vcvjfm

Check out to see my analysis.: https://www.tradingview.com/u/xeshaan/

#goldtreder #technicalanalysis #goldmarket #forextrading #forexlearning #technicalanalysis #financialmarkets