Dow Theory Made Easy

Dow Theory is a trading approach that forms the foundation of technical analysis in financial markets. In this theory, there are 6 tenets that will help you identify the trend and market cycle. It explains price movements, offers ways to confirm them, and helps recognize shifts in the market. It will give you a structure and framework to look at the markets and enable you to understand them more profoundly.

However, this course thoroughly explains the Dow Theory, which can help deepen your understanding of the stock markets and improve your trading strategy. Please find below the snapshot of the course Dow Theory Made Easy:

Section 1: Introduction to Technical Analysis

• Learn the importance of using technical analysis.
• Understand the foundations of technical analysis, i.e., prices are determined by the demand & supply factors, price discounts everything, market move in trends and history repeats itself.
• Learn his 3Ws and 2Hs principles to make informed trading decisions.

Section 2: Introduction to the World of Dow Theory

• Explore the concept of dow theory.
• Understand the six tenets, i.e., three phases of market trend, three movements of market trend, market discount all news, the average must confirm, volume confirm trends, the trend continues unless the weight of evidence shows otherwise along with the examples.
• Learn the importance of Dow Theory.

Section 3: Analyzing & Identifying the Trends and Patterns

• Know about the use of trends, methods of trend identification and its illustration.
• Comprehend the concepts of trendlines and reversal points, and define the reversal points by understanding uptrend, downtrend and sideways trends.
• Learn the concept of support and resistance, number of touches, horizontal support and resistance, and trendline slope and its interpretation.
• Understand the polarity of support & resistance on trendline and change in polarity.