Technical

Analysis Dows Theory

1
1. Market Discounts Every
thing: All information -
past, current or even
future - is discounted into
the markets and this is
reflected in the prices of
stocks and indexes. Charles Dow (1851-1902)
Publisher and Founder of The
wall street Journal, Since
1889

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2. Dow Theory: Trends

Down Trend

Up Trend

Side Ways

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2. Dow Theory: Trends

Correction
Or
Price Retracement

Up Trend

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2. Dow Theory: Trends

Minor Trend Minor Trend

Major Trend

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3. Dow Theory: 3 Phases

Excess

Consolidation
Public Participation

Accumulation

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 Distribution
3. Dow Theory: 3 Phases
Excess
Consolidation

Mid Entry

Early Entry

Public Participation
Accumulation
Silver Chart: MCX India

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 3. Dow Theory: 3 Phases

Distribution

Accumulation

Public Participation

Panic Selling

Silver Chart: MCX India

Accumulation
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BANKNIFTY

NIFTY 50

4. Dow Theory:
Market Indexes Must Confirm Each other
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5. Dow Theory: Volume Must confirm Trend

Increase in price

Increase in Volume Decrease in Volume

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5. Dow Theory: Trend Remains In Effect
Until Clear Reversal Occurs

Proper Confirmation is required

before you consider a shift in Trend

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