Hey everybody, in this thread I will trade with you by Dow theory. I want to show you my trading style and you can give me your opinion about it. I am coming from Germany and it is a great pleasure to be here. I will start with a trading proposal for the fx pair GBPCAD in 5 minute chart long. kind regards Markus
Hi from Alsace =P You may know that place, If you live close to France ? Could you explain Dow Theory ? What's the rule base ? Procedures ? In two or three words. Don't bother you. I guess currencies are great instrument for that, Since they tend to move in a trendy fashion ? Duplicable system ? Don't know. What do you think ? Well ... Wish you the best !
Hey currently from Frankfurt am Main/Germany, sorry I don´t know the place where you come from. I am living in Germany, close to Munich and not so far from France My DowHow approach is very simple and based on the six tenets of the Dow theory. I will post an analysis where you are able to see the style. This approach works in all liquid markets and is consistent and duplicate. Furthermore in this thread you will find my weekly performance. I wish you a very comfortable weekend. I am looking forward to our further conversation. warm regards Markus
Nasdaq100 – Do we have achieved the top? There are many ways to analyze a value. The simplest way based on the sex tenets of Charles Dow. One of these tenets means that every market displays three movements called the “main movement”, the “medium swing” and the “short swing”. Furthermore said Dow that in every value or market exists three phases called “accumulation phase”, “public participation” and “distribution phase”. The “accumulation phase” is a period when investors “in the know” are actively buying (or selling) stocks against the general opinion of the market. With this information we want to analyze the Nasdaq100 in the timeframe of one hour. Main movement: The main trend shows us an intact uptrend with a correction zone between 4543 points and 4426 points on the lower side (green rectangle). After the price has created a new top at 4584 points it came back into the green zone. As Dow said a trend continuation is more likely than a trend break so we can expect that the price is stabilized in the green zone and started the next movement from there. If we get a close below the green zone, the trend is unfortunately broken and our chance is off. Medium swing: The current correction which we can see in the main movement indicates in the medium swing by a downtrend. The price is here in the movement – this term means that the price is in this case below the last point two at 4506 points – and the current correction zone runs between 4506 points and 4556 points on the upper side. A trading chance offers to us when the price is running back into the red zone and is turned back there. But we have to be careful because this trend size is running against the main movement. Charles Dow argued that it is better if all trends are facing in the same direction. Short swing: In the smallest trend size we have an especially situation because it indicates the same picture as in the medium swing. Appropriate the same words as above mentioned supplies here. My personal conclusion: We have to decide in which trend size we want to make a trade. We have two options. The first one is a long trade in the main movement, as long as the price remains in the green zone. With a stop below the mentioned zone we can speculate on a trend continuation. The second one is a short trade in the short swing trend size, but only if the price is coming back into the red zone. Why should we take the short swing and not the medium swing? The answer is really simple. If you remember Dow said the trends have to run in the same direction. The medium swing doesn´t do that because it´s upper trend runs against. Therefore the short swing is the right one because its upper trend – the medium swing – is running in the same direction. I hope you will remain favorably disposed towards me and always remember: the journey is the reward! kind regards Markus Gabel
%% Mr KP; DOW Theory; is a great study.... yes.Dow Theory may NOT help anyone in daytrading. Sorry NO one can explain DOW Theory in 2 or 3 words; 2 or 3 books on the subject may help. One thing MR D0ow [dow jones empire] proved; no FED, no gov, no one is bigger than the market......................................Wisdom is profitable to direct
Yes, you are right. There are a many successful strategies in the market but all of them based on the first tenet of Dow: Every opinion of every trader around the world you can see in the chart, because everything based on supply and demand which based on fear and gread - thats all. Who is getting this fact has the chance to be successful in trading.
Hello everybody on Sunday, here is my result of my weekly trading, based on the DowHow approach. Have a nice Sunday. Markus
EUR.USD – Is the great downtrend over? Weekly chart: The big picture is in a mature downtrend. The current correction is the seventh one and the current increase touched the point three at € 1.15344 the second time. Nor we do not have a close but if we get a close, the big downtrend will break and the EURO has the chance to create a new uptrend. Daily chart: What we waiting in the weekly chart in the daily chart it was happened. Here we see a young uptrend, which is very far in the movement. Yesterday we saw a classical reversal bar and this one could be a signal for starting the correction of this uptrend. The correction zone starts at € 1.1376 and goes down to € 1.0821. Yes, I know it is a very large zone but therefore the EURO has the chance to create a long-term uptrend with all available calm. Hourly chart: In this trendsize we already see a corrective downtrend. The price already was in the red correction zone and indicates some signals that the trend is able to continue. I am short in this pair, my entry signal was the last reversal bar. We will see how far the trend will run. I hope you will remain favorably disposed towards me and always remember: the journey is the reward! kind regards Markus Gabel
a great trade is finished in #USDCHF. The signal came by reversal signal in an intact uptrend and there in the correction zone.