Читать книгу The Handbook of Technical Analysis + Test Bank - Lim Mark Andrew - Страница 22

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

• Understand the basic concepts and assumptions of Dow Theory

• Apply the concepts of Dow Theory to forecast potential entry and exit points in the market

• Identify the strengths and weaknesses of applying Dow Theory

• Explain the importance of price and volume confirmation as a basis for determining potential market action

• Highlight the current challenges to Dow Theory

Dow Theory lays the basic foundation for modern day technical analysis. Its premises underpin the very study of market action analysis and have withstood the test of time. In this chapter, we shall be discussing the basic assumptions of Dow Theory and its relevance in today’s markets.