dow theory: The Basic Theories | SigmaForex
- 09/18/08 01:21 PM
* Dow Theory The oldest theory in technical analysis states that prices fully reflect all existing information. Knowledge available to participants (traders, analysts, portfolio managers, market strategists and investors) is already discounted in the price action. Movements caused by unpredictable events such as acts of god will be contained within the overall trend. Technical analysis aims at studying price action to draw conclusions on future moves. Developed primarily around stock market averages, the Dow Theory holds that prices progressed into wave patterns, which consisted of three types of magnitude—primary, secondary and minor. The time involved ranged from less than three weeks … (1 comments)
* Dow Theory The oldest theory in technical analysis states that prices fully reflect all existing information. Knowledge available to participants (traders, analysts, portfolio managers, market strategists and investors) is already discounted in the price action. Movements caused by unpredictable events such as acts of god will be contained within the overall trend. Technical analysis aims at studying price action to draw conclusions on future moves. Developed primarily around stock market averages, the Dow Theory holds that prices progressed into wave patterns, which consisted of three types of magnitude—primary, secondary and minor. The time involved ranged from less than three weeks … (1 comments)
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