dow theory in forex

Forex Trading main Dow Theory price action per focus krti hay.Volume sirf uncertain conditions Kay liay istamal hota hay.Volume ko primary trend ki direction main move krna chahiye.Agar Primary Trend down ho ga to market decline main volume increase ho ga.Dow Theory modern Technical analysis Kay qareeb hay.



Assumptions of Dow Theory

Dow Theory har cheez ko average discount krti hay q Kay wo aik waqt main hazaroon traders investors ki combine activity ko dikhati hay.Stock price main hr information reflect hoti hay.Jesay e nai information ATI hay market main traders isko adopt krtay hain aur is Kay according price ko adjust kia jata hay.

Market is Combined of Three Trends

Dow Theory main 3 trends ko assume kia jata hay primary ya major trend Jo Kay Kam az Kam aik Saal aur zayada Saal tak continue rah sakta hay.Ye trend zyada tr price movement Kay liay responsible hota hay.Primary trend ko secondary trend interrupt krta hay Jo Kay primary trend kay against move krta hay jab wo overstretched ho.



Secondary trend interrupt movement of primary trend.aur ye primary trend kay opposite move krta hay.Lakin secondary trend ko devolpment Kay phase main identify krna bohat mushkil hota hay.Secondry trend 3 weeks tk continue krta hay lakin ye zayada months tak bi ja sakta hay.



Minor trend averages main day to day fluctuation ko dikhata hay.Ye zayada 6 days se Kam hota hay aur isko Dow theory main zayada importance nai di jati.
Dow Theory dikhati hay Kay bullish market prevail kray gi.Is theroy Kay according major market trends Kay 3 phase hotay Hain Accumulation Phase Public Participation aur distribution phase.



Advantage of Dow Theory

Dow theory ka sab se bara faida ye hay Kay ye traders ko zayada accuracy Kay sath market trends ko identify krna main madad krta hay isliay wo potential price action ka advantage Le saktay Hain.Ye traders ko warn bi krta hay Kay trade safe rah Kay krien aur Market trend kay against jaien.

Re: Dow Theory in Forex

What Is the Dow Theory? The Dow Theory is a financial theory that says the market is in an upward trend if one of its averages (e.g., industrials or transportation) advances above a previous important high and is accompanied or followed by a similar advance in another average.
How do you trade the Dow Theory?

What is the Dow Theory known as?


The Dow Theory, also known as the Dow Jones Theory, forms an important part of technical analysis. Its principles help traders understand the market better and identify price and volume movements more accurately. This theory was propounded by Charles Dow years ago, even before candlestick charts were invented.




Dow Theory Trading Strategy

• Wait for a swing low in the primary trend to be established.
• A secondary upward trend must emerge.
• This is followed by a retracement that must exceed 3% in DJIA or NASDAQ (based on Robert Rhea).
• Both retracements must hold above the prior swing low in both DJIA and NASDAQ.
• What are the 3 principles 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.