Dow Theory

Fiabilité : ★★★★★

The 6 foundational principles of technical analysis by Charles Dow. The base of everything else.

In detail

1. Market discounts everything. 2. Three trends: primary (months/years), secondary (weeks/months), minor (days). 3. Three phases: accumulation, public participation, distribution. 4. Indices must confirm each other. 5. Volume confirms trend. 6. A trend persists until proven otherwise.

🎯 How to trade

First identify primary trend. Do not fight it. Buy in accumulation phase, sell in distribution phase.

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