Let's consider key provisions of the theory of Dow: Any factor influencing the movement of the prices finds the display in indices. In other words - indices consider everything. The market is characterized by the ascending, descending and horizontal tendencies. Thus, Dow selected also primary, secondary and small tendencies. Primary (main) proceeds year or more, secondary (intermediate) lasts about several months, and small (short-term) does not exceed three weeks. The main tendency totals three phases. On a phase of accumulation the most competent investors enter game and shop. On the second phase followers of technical methods join them. Thus, economic information becomes the more and more optimistic. On terminal phase the general public is connected, there comes the agiotage, the volume of speculation increases. At this time those informed investors start selling. Thus, the tendency stops. Indices are obliged to confirm with each other i.e. any considerable signal reflects both in industrial, and transport indices. Trade volume increases in the direction of primary tendency. Validity period of a tendency stops once there is change in the signal. If you are looking for working strategies, you better visit this Forexchief broker page here Forexchief offers lowest spreads and fastes order execution I know, so use the broker for your strategies. You will get better results.
