Thread 🧵on Six tenets of #DowTheory of #TechnicalAnalysis
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#TechnicalAnalysis #StockMarket
Dow Theory, the foundation of #TechnicalAnalysis was first introduced by Charles Dow, who was founder of Dow Jones & Company and first editor of the Wall Street Journal. This theory is based on many editorials he had written between 1900-1902.
Six Tenets of Dow Theory
1⃣ The market discounts all news
This principle explains that any information available in market is already reflected in price of stocks & indices. This includes all data such as earnings announcements by companies, rise (or fall) in inflation or even sentiments of investors.
2⃣ The market has three trends
This theory was the first to propound that the market moves in trends.
The trends are:
✅Primary Trends
✅Secondary Trends
✅Minor Trends