Dow theory in forex trading
INTRODUCTION
Dow theory aik popular used concept hai jo keh charting aur technical analysis mein use hota hai. Yeh oldest technical tools mein sa aik consider kia jata hai. Yeh theory 1900 sa 1902 mein , Charles Dow ny discover ki aur es ka basic principles ki base rakhi. Esi ka name per es theory ko bad mein Dow theory ka nam mila. Yeh stock market mein investors ki help karti hai, keh wo trade condition ko health ko understand kar saken. Dow theory ka inventor , Charles Dow 1902 mein es jahan s chla gya jis ka bad Williams Hamilton nay es ko continue kia. Es ki aik picture dekhtay hain:
Es picture mein aik simple graphical explanation ki hai hai , es mein trend start hota hai to market apny moves ko change krti hai, es continually changing market uptrend aur downtrend ka mid mein hi rehti hai, pher upward trend ka bad sideways trend hota hai.
Assumptions:
Es theory ki 6 exemption hain , jin mein sa kuch ko dekhtay hain:
Market ka discount: Dow theory ki assumption propose karti hai keh stock market har cheez ko reflect karti hai jis mein stock ki information bhi include hoti hai, jis mein past , current aur even future bhi hota hai. Yeh theory unpredictable account ka events ka baray mein bhi information provide karti hai, jo keh unpredictable hotay hain, jesa keh earth quake aur dosray natural disorder.
Market ka 3-trends:
Primary , secondary aur minor trend jo keh stock market ko affect kartay hain:
1: primary trend:
Primary trend market ka aik major trend hota hai, jo keh indicate karta hai keh market long run mein kesay move karti hai, yeh rising aur falling market dono mein occur ho sakta hai.
2: secondary trend:
Yeh primary trend ka liay correction consider kia jata hai, yeh primary trend sa opposite action hai, es ki range 10 days aa 3 month hoti hai
3: minor trend:
Es mein market ki movement daily basis per fluctuate karti hai, yeh trends less than three weeks chltay hain. Yeh short term trends hotay hain.
Es ko aik picture sa dekhtay hain
Es picture mein understanding ko clear karnay ka liay different colors use kiay gay hain, green aik minor trend hai, red secondary trend hai, aur blue primary trend hai.
Market ka 3-phases:
Market ka 3 phases mein accumulation, public participation aur distribution ya panic phase hain.
Bullish market mein ek phases ko asa describe karen gy:
1: Accumulation phase:
Yeh tab hota hai jab investors current market mein change feel kartay hain, jab yeh market mein entry ly ry hoty hain.
2: Public participation phase:
Es phase mein investors market mein tabhi entry letay hain, jab market ki condition improve hoti hai, aur positive sentiment noticeable ho jata hain.
3: Distribution ya panic phase:
Yeh phase tab hota hai jab entire bullish line news ki headline media carry kartay hain. Buying hoti hai.
Es ko aik picture sa dekhtay hain
Es picture mein blue color box accumulation phase hai, green color public participation phase hai, black box distribution phase hai aur red sa panic selling ko show kia gya hai.
Dow theory aik popular used concept hai jo keh charting aur technical analysis mein use hota hai. Yeh oldest technical tools mein sa aik consider kia jata hai. Yeh theory 1900 sa 1902 mein , Charles Dow ny discover ki aur es ka basic principles ki base rakhi. Esi ka name per es theory ko bad mein Dow theory ka nam mila. Yeh stock market mein investors ki help karti hai, keh wo trade condition ko health ko understand kar saken. Dow theory ka inventor , Charles Dow 1902 mein es jahan s chla gya jis ka bad Williams Hamilton nay es ko continue kia. Es ki aik picture dekhtay hain:
Es picture mein aik simple graphical explanation ki hai hai , es mein trend start hota hai to market apny moves ko change krti hai, es continually changing market uptrend aur downtrend ka mid mein hi rehti hai, pher upward trend ka bad sideways trend hota hai.
Assumptions:
Es theory ki 6 exemption hain , jin mein sa kuch ko dekhtay hain:
Market ka discount: Dow theory ki assumption propose karti hai keh stock market har cheez ko reflect karti hai jis mein stock ki information bhi include hoti hai, jis mein past , current aur even future bhi hota hai. Yeh theory unpredictable account ka events ka baray mein bhi information provide karti hai, jo keh unpredictable hotay hain, jesa keh earth quake aur dosray natural disorder.
Market ka 3-trends:
Primary , secondary aur minor trend jo keh stock market ko affect kartay hain:
1: primary trend:
Primary trend market ka aik major trend hota hai, jo keh indicate karta hai keh market long run mein kesay move karti hai, yeh rising aur falling market dono mein occur ho sakta hai.
2: secondary trend:
Yeh primary trend ka liay correction consider kia jata hai, yeh primary trend sa opposite action hai, es ki range 10 days aa 3 month hoti hai
3: minor trend:
Es mein market ki movement daily basis per fluctuate karti hai, yeh trends less than three weeks chltay hain. Yeh short term trends hotay hain.
Es ko aik picture sa dekhtay hain
Es picture mein understanding ko clear karnay ka liay different colors use kiay gay hain, green aik minor trend hai, red secondary trend hai, aur blue primary trend hai.
Market ka 3-phases:
Market ka 3 phases mein accumulation, public participation aur distribution ya panic phase hain.
Bullish market mein ek phases ko asa describe karen gy:
1: Accumulation phase:
Yeh tab hota hai jab investors current market mein change feel kartay hain, jab yeh market mein entry ly ry hoty hain.
2: Public participation phase:
Es phase mein investors market mein tabhi entry letay hain, jab market ki condition improve hoti hai, aur positive sentiment noticeable ho jata hain.
3: Distribution ya panic phase:
Yeh phase tab hota hai jab entire bullish line news ki headline media carry kartay hain. Buying hoti hai.
Es ko aik picture sa dekhtay hain
Es picture mein blue color box accumulation phase hai, green color public participation phase hai, black box distribution phase hai aur red sa panic selling ko show kia gya hai.
