In this article, we will explore the intricacies of financial decision-making and how to protect your investments in the stock market. We’ll delve into various heuristics and cognitive biases that...
Read MoreDow Theory: The Six Tenets
In this two-part article, we are going to discuss the Dow Theory and its six tenets through my perspective. I’m a trader who make a living using technical analysis for about 7 years, and I just use candlesticks and volume. Charles Dow is considered the father of technical analysis, and he did great deeds during his lifetime, and the creation of the Dow Theory and its tenets was one of them. As a journalist, he founded the Wall Street Journal, one of the most respected financial publications in the world. As a market scholar, he invented the Dow Jones Industrial Average (DJIA) index. also, one of the most prominent indices used in the financial markets. Yes, the man who lend his name to one of the most famous indices in the world, also developed the Dow Theory, a series of tenets that helps us to understand better the human behavior in the market. Notice that technical analysis is all about behavior and psychology,