Dowtheory
USDCAD ChartTrend is Bullish Trend. Price retraced to print HL, at HL there is Bullish Hammer so take Instant buy entry
HCC Bullish/Long We need a close above 55 for this long to play out. Once it closes above 55 with good volume, one can take this trade.
First Tp - 100 ish
Final Tp - 500 but that is a long long way time/price wise.
The weekly chart looks good after a mid range retest.. now we need to see a good reaction and a new leg towards the top of the range and beyond.
DreamAnalysis | Technical Analysis Dow Theory EP03📚 Welcome to the Educational Content Section of Our Channel: Technical Analysis Training
👋 Recap of the Previous Session: In the previous session, we covered the middle two principles of Dow Theory. Make sure to review and study them, and if you have any questions, feel free to reach out to us in the comments.
📖 Today’s Focus: Let’s dive into Principles 5 & 6 of Dow Theory and explore their significance in market analysis.
🎨 What is Technical Analysis? Technical analysis is more of an art than a science. Just like art, there is no definitive right or wrong. Instead, we create rules based on experience to navigate the lawless market. Patterns in life can reflect in the markets, but we must always approach it with an artistic perspective.
📑 Principles of Dow Theory:
1 - The Averages Discount Everything (Not applicable to crypto)
2 - The Market Has Three Trends
3 - Trends Have Three Phases
4 - Trends Continue Until a Reversal is Confirmed
5 - The Averages Must Confirm Each Other
6 - Volume Confirms the Trend
📊 Principle 5: Volume Confirms the Trend
Typically, when the price moves in the direction of the main trend, the trading volume increases. The same applies to bearish trends, where declining prices are supported by increasing sell volume. Low volume suggests weakening momentum. For example, in a bull market, buying volume should rise with the price, and during corrections, volume should remain steady.
📉 However, if volume increases during a correction, it may signal that more investors are turning bearish on the asset. Therefore, volume acts as a crucial indicator of the strength or weakness of a trend.
📉 Principle 6: Trends Continue Until a Reversal is Confirmed
🔄 Dow Theory emphasizes that trends continue until a clear reversal signal is observed. This means that despite short-term fluctuations or corrections, the primary market trend remains intact until there is unmistakable evidence of a change in direction.
🚩 It’s important to distinguish between temporary corrections and true trend reversals. Misinterpreting short-term declines in a bull market or temporary rallies in a bear market can lead to confusion and poor decision-making.
🎯 Conclusion: This concludes our breakdown of the 6 principles of Dow Theory. In the next session, we will review and summarize the entire Dow Theory to solidify your understanding.
📝 Important Note: These principles were developed over 100 years ago, and with today’s diverse markets, there are many different perspectives on their application.
⚠️ Please remember that these lessons represent our personal view of the market and are not financial advice. Always do your own research before making investment decisions.
DOW/US30 what are we going to do next. Short at 42275-42268 - only once the price confirmed. with Stop loss MUST BE at 42326
Target 1 at 42233 - always take partial
Target 2 at 42174 - bring STOP LOSS TO BE
Target 3 at 42142 These 3 are likely hit due to data come out
Target 4 at 42117.90
DreamAnalysis | Technical Analysis Dow Theory EP02📚 Welcome to the Educational Content Section of Our Channel: Technical Analysis Training
📚 Recap of the Previous Session:
In the previous session, we explained the first two principles of Dow Theory. Make sure to review and study them, and if you have any questions, feel free to reach out to us in the comments.
📖 Today’s Focus:
Principles 3 & 4 of Dow Theory
Now, let’s dive into Principles 3 and 4 of Dow Theory and explore them together.
🎨 What is Technical Analysis?
Let’s talk a bit about technical analysis and patterns in life. Technical analysis is not a science; rather, it is an art. Therefore, there is no right or wrong in art. Instead, we apply rules we have created through experience in this lawless market.
📑 Principles of Dow Theory :
1 - The Averages Discount Everything (Not applicable to crypto)
2 - The Market Has Three Trends
3 - Trends Have Three Phases
4 - Trend Continues Until a Reversal is Confirmed
5 - The Averages Must Confirm Each Other
6 - Volume Confirms the Trend
📊 Principle 3: Three Phases in Every Trend
According to Dow Theory, each major market trend is divided into three distinct phases:
1️⃣ Accumulation
In this phase, large and informed investors begin buying or selling assets at favorable prices. These groups consist of individuals and institutions with significant knowledge and financial resources, often acting contrary to the majority of the market. While most market participants may not yet notice price changes, these informed investors are positioning themselves to benefit from future market movements.
2️⃣ Public Participation
At this stage, most investors start recognizing the trend and begin participating in the market. The trend accelerates as public attention increases, and new capital flows in. This phase is typically characterized by a sharp rise in prices during a bull market or a sharp decline during a bear market.
3️⃣ Excess or Fear
In this phase, participants jump into trades out of fear of missing out on profits or due to panic over further losses. This phase often signals the nearing end of the major trend and is usually followed by a reversal or change in trend direction.
💡 Principle 4: Different Indexes Must Confirm Each Other
This principle states that the overall market trend must be confirmed by various indexes. It means that a bullish or bearish market trend can only be considered valid if other key indexes are moving in the same direction.
🔍 Example: To confirm a bullish market in a country like India, all major indexes, such as Nifty, Sensex, Nifty Midcap, and Nifty Smallcap, should be moving upward.
📝 Important Note: These principles were developed over a century ago, and it is natural that with today's diverse financial markets, there are varying views on their application.
⚠️ Please remember that these lessons represent our personal view of the market and should not be considered financial advice for investment.
DreamAnalysis | Technical Analysis Dow Theory EP01📚 Welcome to the Educational Content Section of Our Channel: Technical Analysis Training
We aim to produce educational content in playlist format that will teach you technical analysis from A to Z. We will cover topics such as risk and capital management, Dow Theory, support and resistance, trends, market cycles, and more. These lessons are based on our experiences and the book The Handbook of Technical Analysis, as well as our learning and insights from the Trade City Pro channel.
🎨 What is Technical Analysis?
Let’s talk a bit about technical analysis and patterns in life. Technical analysis is not a science; rather, it is an art. Therefore, there is no right or wrong in art. Instead, we apply rules we have created through experience in this lawless market.
📊 Introduction to Dow Theory :
Today, for the first part of our lessons, we will begin with Dow Theory, which was developed by American journalist Charles Dow. Many traders still use this method for analysis and trading.
📑 Principles of Dow Theory :
1 - The Averages Discount Everything (Not applicable to crypto)
2 - The Market Has Three Trends
3 - Trends Have Three Phases
4 - Trend Continues Until a Reversal is Confirmed
5 - The Averages Must Confirm Each Other
6 - Volume Confirms the Trend
💵 Principle 1: Price is All You Need
Dow's theory operates based on the "Efficient Market Hypothesis," which assumes that the price of assets reflects all available information. In other words, this approach contrasts with behavioral economics. Factors like earning potential, competitive advantage, management competence—all are accounted for in the price, even if individuals do not know all the details. In more precise readings of this theory, even future events might be reflected in the current market price.
📊 Principle 2: The Market Has Three Types of Trends
According to Dow Theory, price movements in the market are trend-based, and these trends can be divided into three types:
1 - Primary Trend: This is the main movement of the market, dictating the long-term direction, and can last for years.
2 - Secondary Trends: These are corrective movements that run opposite to the primary trend. For instance, if the primary trend is bullish, the corrective trend will be bearish. These trends can last from weeks to months.
3- Minor Trends: These are the daily price fluctuations in the asset. Although minor trends can last for weeks, their direction will always align with the primary trend, even if they contradict the secondary trend.
💡 Final Thoughts for Today :
This is the end of this part, and I must say we have a long journey ahead. We will continually strive to produce better content every day, steering clear of sensationalized content that promises unrealistic profits, and instead, focusing on the proper learning path of technical analysis.
⚠️ Please remember that these lessons represent our personal view of the market and should not be considered financial advice for investment.
NECTAR LIFESCIENCES LONG multi year breakout if it closes above 60 on a weekly basis with good volume. need to wait for the close and then take a position on it. The final target is in the mid 300's but let's take one step at a time.
First breakout confirmation with weekly close above 60 with good volumes
Then head towards tp 1 and then we take it from there.
So far it looks promising with the volumes for the current move let's see how it goes from here.
JM FINANCIAL LTD LONG6 year range breakout with ATH in volume. should buy here or wait for range high retest.. if fomo one should start building position here. looks really strong as does the whole finance sector on the whole.
NZDUSD - Technical Analysis [Long Setup]🔹 NZDUSD Analysis on 1HR chart
- The current Trend is Bullish
- Bullish Divergence is Present
- No Reversal pattern
- Waiting for a Break of Structure for Confirmation
🔹 Trade Plan
- Entry Level = 0.61647
- Stop Loss = 0.61072
- TP1 = 0.62223
- TP2 = 0.62802
🔹 Risk Management
- First TP is 1:1
- Second TP is 1:2
🔹 How to Take Trade?
- Only risk 2% of your portfolio
- Take 1% risk entry with 1:1 RR
- Take 1% risk entry with 1:2 RR
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EUR/AUD Chart Technical AnalysisThere is bullish trend also the continuation pattern of Bullish flag. There is Bearish Divergence but the Characteristic of this chart it does not respect the first divergence so I am Bullish bias in this trade. For the safe side took entry (Buy Stop) at the breakout of the pole and SL on the last HL.
EURUSD - Technical Analysis [Long Setup]EURUSD
The current trend is bearish but a bullish divergence exists on the RSI indicator. Also, double double-bottom bullish reversal pattern is formed. Let's wait for confirmation. If it breaks lower high then we are in a bullish trend.
Trade Plan
Entry Level = 1.10551
Stop Loss = 1.10302
TP1 = 1.108
TP2 = 1.1105
Kitex Garments Long 7 year range breakout with good volume.. Should do well. Can enter trade now or wait for a pullback and start building a position.
TEMBO Global Long3 year range broken with good volume.. looks good for continuation, might have a small pull back but one can dca from here on in and wait for the targets.
INTU Inc Long Almost 3 years of range about to breakout. Looks good, one can punt or wait for confirmation of close above 666 on weekly/monthly. Showing good strength .
BioLife Solutions Inc. Longneed confirmation above $25 with volume and we are well on the way towards our targets. stock is looking strong and with the overall market looking healthy per say we should get that confirmation soon enough maybe this week itself.
Veracyte Inc. Bullish Ideaneed a weekly/monthly close above 35 for confirmation and then we can proceed to the targets. looks good, good strength I expect this week to be confirmation but let's see. Patience will pay off.
Edelweiss Fin Serv Longmulti year breakout.. will need a weekly close about 90 to confirm. but looks good to continue and confirm the breakout and proceed to tp1 and beyond. This week is going to be interesting.
Strides Pharma Longmulti year breakout. Volumes are not that great so a little cautious about it. Lets see what this week brings.
UPS looking DOWNSNice head and Shoulders on the United Parcel Service
#UPS and FEDEX are the new dow transport indicator.
An underlying determinant of how the consumer is faring
Since the US is a consumer economy and Online shopping is the majority of retail
if we see new highs on the Indicies, and the home delivery carriers continue to deteriorate
it would give your non confirmation Top
Similar to Dow theory of new High's in the Industrials , but the transports lagging and indeed falling.
USDCAD - Sell Stop on Break of Previous Higher LowTrade Analysis
Currently, there is a bearish divergence and 4-hour resistance indicating a potential trend reversal to bearish. Confirmation of this reversal will be evident if the price breaks the previous HL. As it breaks the HL, it will also break the support levels. Consequently, this support will turn into resistance and will be used as the SL.
Trade Plan
Entry: 1.37012
Stop Loss (SL): 1.37095
Take Profit 1 (TP1): 1.36929
Take Profit 2 (TP2): 1.36846
