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Technical Analysis Theories: Elliott Vs. Dow (Part 2 of 3)
Last week, we reviewed the Elliott Wave Principle and answered some questions. This week we will shift our focus on the Dow Theory and what it means to us as currency traders. The Dow Theory is a technical analysis tool used to find the price action, trends, and swings. Unlike the Elliott Wave, the Dow Theory never developed “specific” chart principles or rules to trade based on; it did provide us with six basic tenets to help us. It should be noted that the Elliott Wave has incorporated some of Charles Dow Theory ideas. What are the six basic tenets of the Dow Theory ? The market has three movements – (1) The ... (full story)