This is a brief summary of Dow's theory! I advise you to keep studying and informing! 📉
The Dow Theory is the cornerstone of technical analysis and is based on these key principles:
✅ The market discounts everything: Prices already reflect all available information.
✅ Trends are divided into three phases: Accumulation, public participation, and distribution.
✅ The market moves in trends: Primary (long-term), secondary (medium-term), and minor (short-term).
✅ The trend remains in effect until a clear reversal signal occurs.
✅ Volume must confirm the trend: Strong movements with high volume are more reliable.
✅ Indices must confirm each other: If BTC rises, but ETH does not, the bullish signal may be weak.
🔥 Practical application:
Buy during accumulation, hold during public participation, and sell during distribution.
Use supports, resistances, and volume to confirm trends.
Do not trade against the main trend.
📊 If you master the Dow Theory, you will improve your analysis and decisions in the markets.