📘 Dow Theory in Brief: 5 Golden Lessons for Serious Traders
💡 1. Confirmation Required from Two Indicators:
The trend is only valid if confirmed by both the Dow Industrial and Transportation averages.
If only one breaks a peak or trough, disregard the signal.
📊 2. Volume is the Fuel:
In an uptrend, volume increases with rising prices and decreases during corrections.
In a downtrend, the opposite occurs. Movement without volume = weakness.
🌀 3. The Market Has Phases:
Accumulation (smart buying quietly)
Public Participation (the public enters)
Distribution (smart selling despite good news)
📰 4. The Market Leads the News:
If you wait for the news to be good… the price will have already moved ahead of you.
⚠️ 5. Not Everything:
Dow Theory is excellent as a foundation, but it is not sufficient on its own. Combine it with other modern tools.
✅ Summary:
The market moves by collective psychology… not by predictions. Follow the trend, respect the signals, and think for yourself.
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🔍 This is educational content, not a recommendation. Trading is your responsibility.
