章節 2  Three Trends of Dow Theory

Trading with the trend is one of the best ways to make money in the forex markets. Most new traders try to trade against the trend or enter very late and suffer huge losses. A sound knowledge of determining a trend in its initial stage can earn you handsome profits.

Three trends of Dow Theory

According to Dow theory, a trend consists of three categories, Primary, Secondary, and Minor trends.

Three Trends of Dow Theory-第1張圖

The primary trend

It can be as long as one year to several years and is the ‘main movement’ of the market. These movements are typically referred to as bull and bear markets. The reality of the situation is that nobody knows where and when the primary uptrend or downtrend will end.

As you can see in the image above when a currency price is moving in primary uptrend it makes new high followed by few lows not lower than the previous lows. Similarly, the same pattern follows when it is in primary downtrend.

The secondary (or intermediate) trend

This trend can last between 3 weeks to several months. Secondary movements are reactionary in nature, think of them as corrections during bull market, or rallies & recoveries in the bear market.

In a bull market, a secondary trend is considered a correction. In a bear market, secondary trend are called reaction rallies. So suppose if a currency during its primary uptrend made a high, it will retrace back to some points to make a low (knows as intermediate trend or correction). Likewise during an primary

關於我們 用戶協議隱私權政策風險披露認證協議社群規範 幫助中心 意見回饋
App Store Android

風險披露

金融工具交易屬於高風險投資活動,有導致部分或全部投資本金損失的風險,可能不適合所有投資者。本網站所包含的任何觀點、聊天訊息、通知、新聞資訊、研究調查、分析、價格或其他訊息都是作為一般市場訊息提供的,僅供教育和娛樂之用,並不構成投資建議。所有的觀點、市場行情、推薦或任何其他內容可能隨時會改變,恕不另行通知。Trading.live對因使用或根據這些訊息而直接或間接造成的任何損失概不負責。

© 2024 Tradinglive Limited. All Rights Reserved.