Wait, don't tell me that if price is making higher highs and higher lows that it's saying that it's going up and that it's a good idea to buy?
..just couldn't resist. But credit where credit is due, this was first thought up in the 19th century, some guy called Dow or something.
Wouldn't want you to get into any legal trouble!
taken from http://en.wikipedia.org/wiki/Dow_Theory
..just couldn't resist. But credit where credit is due, this was first thought up in the 19th century, some guy called Dow or something.
Wouldn't want you to get into any legal trouble!
QuoteDislikedThe theory was derived from 255 Wall Street Journal editorials written by Charles H. Dow (1851–1902)
Dow defined an uptrend (trend 1) as a time when successive rallies in a security price close at levels higher than those achieved in previous rallies and when lows occur at levels higher than previous lows. Downtrends (trend 2) occur when markets make lower lows and lower highs. It is this concept of Dow Theory that provides the basis of technical analysis' definition of a price trend.
Trust price. Know yourself.