Posts Tagged ‘market trends’
21st Century Use of the Charles Dow Theory, Part 5
Tweet
In Part 4 of our series on Dow Theory, we focused on the third tenet: major trends have 3 phases. In this article we are going to focus on the fourth tenet, which is a leading indicator of future direction: the averages must confirm each other.
As a quick refresher, the 6 tenets of Dow Theory are:
1. The price discounts everything.
2. The market has 3 trends.
3. Major trends have 3 phases.
4. The averages must confirm each other.
5. Volume must confirm the trend.
6. A trend is assumed to be in effect until it gives definite signals that it has reversed. Read the rest of this entry »
____________________________
If you enjoyed this article, learn how to apply these techniques with stock market video training.
Get the news feed for up-to-date stock market videos here..
Join me on Twitter, Facebook
Tweet
If you enjoyed this article, learn how to apply these techniques with stock market video training.
Get the news feed for up-to-date stock market videos here..
Join me on Twitter, Facebook
