Thread 🧵on Six tenets of #DowTheory of #TechnicalAnalysis
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#TechnicalAnalysis #StockMarket

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.
This theory was the first to propound that the market moves in trends.
The trends are:
✅Primary Trends
✅Secondary Trends
✅Minor Trends
The theory says that there are three phases to each primary trend:
✅accumulation phase
✅public participation phase
✅panic phase
A trend in the market cannot be verified by a single index. All indices should reflect the same opinion.
Trend in market should be supported by trading volumes.
For eg, in upward trend, volume rises with increase in price and falls with decrease in price. And in downward trend, volume increases with fall in price and decreases with price rise.
Theory says that trends exist despite any noise in market. That is, during upward trend, a temporary trend reversal is possible but market continues to move up and trend continues until clear reversal happens.
Even though it is more than a hundred years old, the Dow Theory is still relevant in the current trading market.
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The YouTube algorithm that I helped build in 2011 still recommends the flat earth theory by the *hundreds of millions*. This investigation by @RawStory shows some of the real-life consequences of this badly designed AI.
This spring at SxSW, @SusanWojcicki promised "Wikipedia snippets" on debated videos. But they didn't put them on flat earth videos, and instead @YouTube is promoting merchandising such as "NASA lies - Never Trust a Snake". 2/
A few example of flat earth videos that were promoted by YouTube #today:
https://t.co/TumQiX2tlj 3/
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https://t.co/yOGZ0pLfHG 5/
Flat Earth conference attendees explain how they have been brainwashed by YouTube and Infowarshttps://t.co/gqZwGXPOoc
— Raw Story (@RawStory) November 18, 2018
This spring at SxSW, @SusanWojcicki promised "Wikipedia snippets" on debated videos. But they didn't put them on flat earth videos, and instead @YouTube is promoting merchandising such as "NASA lies - Never Trust a Snake". 2/

A few example of flat earth videos that were promoted by YouTube #today:
https://t.co/TumQiX2tlj 3/
https://t.co/uAORIJ5BYX 4/
https://t.co/yOGZ0pLfHG 5/