Dow Theory Knowledge Technical Analysis

Concluding Dow Theory

As we discussed Dow ideas or Tenets yesterday which are pillars, but one more crucial rule of Dow was to consider or give most importance to closing price, irrespective of time frame of chart. He believed averages most close above or below previous low or high to confirm the trend.  So always consider closing price to trigger …

Continue Reading
Dow Theory Knowledge Technical Analysis

Tenents of Dow Theory

Now lets list down some ideas of Charles Dow,  which are considered to be roots of technical research.  Across other books and website number of ideas listed may differ but overall, they are included in the broader categories as listed below: Average Discounts Everything This idea states that markets reflect every possible knowable factor that affects …

Continue Reading
Dow Theory Knowledge Technical Analysis

Father of Technical Analysis

After we got some basics clear on ‘What is Technical Analysis’ and cleared some myths on the same, now lets get familiar with the roots of technical. In 1882, Charles Dow and Edward Jones founded Dow Jones and Company. It is believed by most technical analysts that most theories where founded by DOW and he published his …

Continue Reading