What Is Dow Theory?
Charles Dow is the Father of Dow Theory, he born the Theory of Dow, Dow Theory name is derived by his name of Dow Theory.
Three Importins Points Of Dow Theory
- Market Moves in Trends (Uptrends, Downtrends and Sideways)
- Volume Conformation
- A trends remains until it’s gave a signal
- Market Moves in Trends: Market Moves behave of trends, there are three type of trends frist one is uptrends, second one is Down Trends and Third one is Side ways.
- Volume Conformation: Its mean when buyers and sellers enter in the market that time market ups and down, is called Volume Conformation
- A trends remains until it’s gave a signal: If we will see it in a simple way, it is called sideway, it’s mean This means it neither goes up nor down, in such a situation we should not trade at this time but should be patient and wait for the market to go up and down.
What is Trend?
Movement happening is the Market is called trends. It’s mean when the candles goes up and down and keep equal, is called Trend.
There are Three Type of Trend
- Up trend
- Down Trend
- Sideways
What is Up Trend?
Up Trends: When Number of Byers started gowning, when the number of Seller decease then Market goes up, it’s mean candle started following Upwork, that is called Up Trend.
Uptrend Candlestick Symbol
- High (H)
- Low (L)
- Higher High (HH)
- Lower Low (HL)
High Trend (H): When The Market Goes High and Candlestick follows Upwork, High Candle is called High Trend.
Low Trend (L): When The Market Goes Low and Candlestick follows Down work, Low Candle is called Low Trend.
Higher High (HH): When Market goes high and candlestick follow Upwork, when above higher and lower both, the next trend will be call Higher High
Lower Low (HL): When it remains above of Low Trend and forms bellow the high trend, it is called Higher Low (HL) Trends.
What is Down Trend?
Down Trend: When Number of Sellers started gowning, when the number of Byers decease then Market goes Down, it’s mean candle started following Down Work, When the market moves from top to bottom that is called Down Trend. Down Trend is opposite of Up Trend.
Down Trend Candlestick Symbol
- Low (L)
- High (H)
- Lower High (LH)
- Lower Low (LL)
Low (L): When the Candle goes up to down, the new candle will be called Low Trend.
High (H): When the Market Goes low to high, definitely candles will follow the role, candle will go down to up, the next candle will be called High Trend.
Lower High (LH): When the next candle forms low from the previous high candle and remains on high from previous low candle , is called Lower High Trends.
Lower Low (LL): When a candle is below the previous high candle and also below the previous low candle, then it is called lower low trend.
What is Sideways?
Sideways: When the market not goes down or not goes up, it remains on the same basic, This is called Sideways.
Symbol Of Sideways
There are no symbol of Sideways because it always remains on equal basic. So will have to understood according to it’s Analysis and research.
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