Dow Theory

Dow Theory, a fundamental concept in technical analysis, provides insights into market trends and investor behavior. Developed by Charles Dow, it focuses on analyzing market movements to identify potential shifts in direction. According to it, trends have three phases: the primary trend, secondary reaction, and minor trends. Traders use Dow Theory to interpret these trends and make informed decisions about buying or selling assets. By understanding the principles of them. Investors can navigate the markets with greater confidence. Anticipating trend reversals and optimizing their trading strategies. Integrating it with other technical indicators enhances the accuracy of market analysis. Empowering traders to capitalize on opportunities and mitigate risks effectively.