Scribd Logo
Upload

Welcome to Scribd!

  • 28 views

    Dow Theory

    Uploaded by

    Siva Kumar
    The Dow Theory is one of the earliest technical analysis tools dating back to 1900. It helps investors understand market trends and the overall business environment. The Dow Theory describes primary, secondary, and minor market trends and the accumulation, public participation, and distribution phases of bull and bear markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Dow Theory

    Uploaded by

    Siva Kumar
    28 views10 pages
    The Dow Theory is one of the earliest technical analysis tools dating back to 1900. It helps investors understand market trends and the overall business environment. The Dow Theory describes primary, secondary, and minor market trends and the accumulation, public participation, and distribution phases of bull and bear markets.

    Original Description:

    Trading dow theory

    Original Title

    dow theory

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The Dow Theory is one of the earliest technical analysis tools dating back to 1900. It helps investors understand market trends and the overall business environment. The Dow Theory describes primary, secondary, and minor market trends and the accumulation, public participation, and distribution phases of bull and bear markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views10 pages

    Dow Theory

    Uploaded by

    Siva Kumar
    The Dow Theory is one of the earliest technical analysis tools dating back to 1900. It helps investors understand market trends and the overall business environment. The Dow Theory describes primary, secondary, and minor market trends and the accumulation, public participation, and distribution phases of bull and bear markets.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Dow Theory

    by Charles Dow
    • The Dow Theory is one of the most popularly used concepts of charting
    & Technical Analysis. It happens to be one of the oldest technical analysis
    tools as well. Dow Theory days back to as early as 1900 to 1902 when
    Charles Dow laid the basic principles. The Theory named after him as
    Dow Theory. It helps investors in the stock market to understand the
    health of the trade condition. The father of Dow Theory, Mr Charles Dow
    died in 1902 but after his death work of Dow Theory was continued by
    William Hamilton.
    • The Dow Theory helps investors to know how the stock market used to
    understand the business environment’s health. It was the first theory of
    technical analysis that explains the trends of market moves.
    • HISTORY REPEATS EVERYTHING

    • MARKET DISCOUNT EVERYTHING

    • A TREND IS SAID TO BE CONTINUOUS UNTIL A REVERSAL IS


    CONFIRMED
    Market Trends are of three types
    The primary, secondary and minor trends that affect
    the stock market
    •Primary Trend: The primary trend is one of the major trends for the
    market, which indicates how the market moves in the long-term. It can
    occur in both rising and falling market.
    •Secondary Trend: It is considered for correction to a primary trend. It’s an
    opposite action to the primary trend. This secondary trend has a range of 10
    days to three months.
    •Minor Trend: In this trend, the market movement fluctuated on a daily
    basis. And these trends last usually less than three weeks. Minor trends are
    short term trends.
    The market has three phases
    These three phases in the market are accumulation, public participation, and distribution or panic phase.

    I
    • In bullish markets, the phases described as below
    • Accumulation Phase: The accumulation market phase is when investors
    feel the change in the current market direction when they are entering
    the market.

    • Public Participation Phase: In this phase, investors enter the market


    just when the condition of the market improves and positive sentiments
    become noticeable.

    • Distribution or Panic Phase: This phase begins when the entire bullish
    news headline is carried by media, there is buying on huge volume
    which is base on speculation. During the distribution phase, the trade
    news is bullish than ever, business value begins to advance quickly, &
    the community flock to the market in expectation of catching the
    movements.
    Now talk about the bear market phases:
    • Distribution Phase: Usually the bear market starts when the bull
    market going to end.

    • Panic selling phase is: According to the name – best described by panic
    & fear. As a market price begins to failure and buyers become limited,
    people want to leave the market urgently when the very sharp drop
    occurs in the price of the market.

    • Discouragement phase: It occurs when the sharpest failures are finish.


    Stock investors thought that the market would improve, sell their
    portfolios which discouraged by the condition. This phase may follow
    through a lengthy horizontal range, but after some time (sooner or
    later) things start to look positive and a new accumulation phase occurs
    in the market.

    You might also like