What's the Dow Theory in forex trading

What's the Dow Theory in forex trading

Dow Theory Dow theory Forex trading ki bunyadi principles par mabni hai. Is theory ka asal maqsad market trends ko samajh kar trading decisions ko improve karna hai. Charles Dow ne 19th century mein is theory ko develop kiya, aur aaj bhi iska istemal traders dwara kiya jata hai. Dow theory ke mutabiq, market main 3 mukhtalif trends hoti hain: primary trend, secondary trend, aur minor trend. Primary trend market ka asal direction batati hai, secondary trend ise temporary corrections ya retracements ko darust karti hai, aur minor trend short-term fluctuations ko darust karti hai. Is theory ke teht, agar ek currency pair ya stock ki keemat primary trend ke mutabiq badh rahi hai, to yeh samjha jata hai ke market mein uptrend hai. Iske opposite, agar keemat primary trend ke khilaf ja rahi hai, to yeh downtrend ko darust karti hai. Dow theory traders ko market trends ko samajhne mein madad karti hai taake woh sahi waqt par apne positions ko enter ya exit kar sakein. Ek aur important concept Dow theory mein "confirmation" hai. Agar price trend ko volume ke sath confirm kiya jata hai, to iska matlab hai ke yeh trend zyada strong hai. Dow theory ke mutabiq, jab market ek direction mein move karta hai, to volume bhi uss direction mein barhna chahiye. Yeh theory market analysis mein technical analysis ka aham hissa hai, aur iska istemal traders ko market ke future trends ka andaza lagane mein madadgar sabit ho sakta hai. Iski understanding traders ko market ke complexities ko samajhne mein madad deti hai aur unhein better trading decisions lene mein madad karti hai.

Dow theory Forex trading ki bunyadi principles par mabni hai. Is theory ka asal maqsad market trends ko samajh kar trading decisions ko improve karna hai. Charles Dow ne 19th century mein is theory ko develop kiya, aur aaj bhi iska istemal traders dwara kiya jata hai. Dow theory ke mutabiq, market main 3 mukhtalif trends hoti hain: primary trend, secondary trend, aur minor trend. Primary trend market ka asal direction batati hai, secondary trend ise temporary corrections ya retracements ko darust karti hai, aur minor trend short-term fluctuations ko darust karti hai.