Price Action trading is the ultimate form of trading. Dow Theory is of utmost importance when trading using Price Action.

Sharing these 6 Important Dow Theory lessons for free which is sold as a ₹40,000 course.

⬇️ A Thread 🧵

It is a technical framework which explains markets movements based on certain rules called the Tenets of dow theory

The 6 tenets are listed below: 👇

1. 3 TREND MARKET

a) Primary trends

• Main movements in the market

• Time frame is large (1yr or greater)

b) Secondary trends

• These trends are corrections in the primary trend

• Direction opposite to the primary trend

• Timeframe is small (few weeks to few months)

c) Minor trends

• Smallest and most insignificant trends

• Smallest time frame ( few hours to few days)

2. MARKET DISCOUNTS EVERYTHING

This tenet is essentially made around the fact that the price of a stock incorporates all the information (any events, results, ratios, earning potential, etc.) about the stock.

Even future events are discounted as risk