Dow theory in forex trading;
*Asalam o alaikum* respected members aj ka topic h Dow theory aj hum es dow theory ko achi trah discuss kren gy ta k ap ka concept clear ho jy.
Definition
The Dow theory on stock price movement is a form of technical analysis that includes some aspects of sector rotation. The theory was derived from 255 editorials in The Wall Street Journal written by Charles H. Dow, journalist, founder and first editor of The Wall Street Journal and co-founder of Dow Jones and Company.
Explanation
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:
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 assumptions 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.
3 Trends of Dow Theory:
Dow theory asserts that major market trends are composed of three phases: an accumulation phase, a public participation (or absorption) phase, and a distribution phase.
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.
*Asalam o alaikum* respected members aj ka topic h Dow theory aj hum es dow theory ko achi trah discuss kren gy ta k ap ka concept clear ho jy.
Definition
The Dow theory on stock price movement is a form of technical analysis that includes some aspects of sector rotation. The theory was derived from 255 editorials in The Wall Street Journal written by Charles H. Dow, journalist, founder and first editor of The Wall Street Journal and co-founder of Dow Jones and Company.
Explanation
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:
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 assumptions 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.
3 Trends of Dow Theory:
Dow theory asserts that major market trends are composed of three phases: an accumulation phase, a public participation (or absorption) phase, and a distribution phase.
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.
