Factors Influencing Market Trends in Dow Theory
1. Short-term trends last from a few days to a few weeks and are mainly influenced by people's emotions. These trends are often driven by sudden news, short-term capital speculation, and other factors, making them the most frequently fluctuating patterns in the market.
2. Medium-term trends last from a few weeks to a few months and are dominated by changes in industry prosperity, macro policy adjustments, and other factors, establishing a phased operational framework for the market.
3. Long-term trends last for several months or even years, with the driving forces stemming from economic cycles and technological revolutions, determining the core direction of the market.
These three types of trends coexist in the same market, and even in a long-term bull market, there may be medium-term corrections and short-term fluctuations.
