Basics of Dow Theory

Brief Summary of The Dow Theory in Technical Analysis PDF

Introduction

Charles Dow is the father of the modern technical analysis in the West. He developed a theory, later called Dow Theory, which expresses his ideas on price actions in the stock market. Charles Dow was also one of the founders of Dow Jones and Company, as well as the first editor of Wall Street Journal, where he published his ideas on the behavior of the stock market

The Dow Theory in Technical Analysis

The participants of the market, whether experienced or not, need a certain method or a strategy for conducting their investment and trading decisions in the market easily. One may use fundamental analysis, the other one may use technical analysis, or even the mixture of both for deciding when is the right time to buy or sell a certain financial instrument. Each method of analysis has its unique principles which will help traders and investors to make their trading decisions easily.

Conclusion

The participants of the market, whether experienced or not, need a certain method or a strategy for conducting their investment and trading decisions in the market easily.

Dow Theory PDF

When first entering the foreign exchange market (forex market) traders can easily face many losses if they do not use proper forex trading strategies and tools for forecasting the market movement.