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DreamAnalysis | Technical Analysis Dow Theory EP03📚 Welcome to the Educational Content Section of Our Channel: Technical Analysis Training 👋 Recap of the Previous Session: In the previous session, we covered the middle two principles of Dow Theory. Make sure to review and study them, and if you have any questions, feel free to reach out to us in the comments. 📖 Today’s Focus: Let’s dive into Principles 5 & 6 of Dow Theory and explore their significance in market analysis. 🎨 What is Technical Analysis? Technical analysis is more of an art than a science. Just like art, there is no definitive right or wrong. Instead, we create rules based on experience to navigate the lawless market. Patterns in life can reflect in the markets, but we must always approach it with an artistic perspective. 📑 Principles of Dow Theory: 1 - The Averages Discount Everything (Not applicable to crypto) 2 - The Market Has Three Trends 3 - Trends Have Three Phases 4 - Trends Continue Until a Reversal is Confirmed 5 - The Averages Must Confirm Each Other 6 - Volume Confirms the Trend 📊 Principle 5: Volume Confirms the Trend Typically, when the price moves in the direction of the main trend, the trading volume increases. The same applies to bearish trends, where declining prices are supported by increasing sell volume. Low volume suggests weakening momentum. For example, in a bull market, buying volume should rise with the price, and during corrections, volume should remain steady. 📉 However, if volume increases during a correction, it may signal that more investors are turning bearish on the asset. Therefore, volume acts as a crucial indicator of the strength or weakness of a trend. 📉 Principle 6: Trends Continue Until a Reversal is Confirmed 🔄 Dow Theory emphasizes that trends continue until a clear reversal signal is observed. This means that despite short-term fluctuations or corrections, the primary market trend remains intact until there is unmistakable evidence of a change in direction. 🚩 It’s important to distinguish between temporary corrections and true trend reversals. Misinterpreting short-term declines in a bull market or temporary rallies in a bear market can lead to confusion and poor decision-making. 🎯 Conclusion: This concludes our breakdown of the 6 principles of Dow Theory. In the next session, we will review and summarize the entire Dow Theory to solidify your understanding. 📝 Important Note: These principles were developed over 100 years ago, and with today’s diverse markets, there are many different perspectives on their application. ⚠️ Please remember that these lessons represent our personal view of the market and are not financial advice. Always do your own research before making investment decisions.
Education
by DreamAnalysis
DreamAnalysis | Technical Analysis Dow Theory EP02📚 Welcome to the Educational Content Section of Our Channel: Technical Analysis Training 📚 Recap of the Previous Session: In the previous session, we explained the first two principles of Dow Theory. Make sure to review and study them, and if you have any questions, feel free to reach out to us in the comments. 📖 Today’s Focus: Principles 3 & 4 of Dow Theory Now, let’s dive into Principles 3 and 4 of Dow Theory and explore them together. 🎨 What is Technical Analysis? Let’s talk a bit about technical analysis and patterns in life. Technical analysis is not a science; rather, it is an art. Therefore, there is no right or wrong in art. Instead, we apply rules we have created through experience in this lawless market. 📑 Principles of Dow Theory : 1 - The Averages Discount Everything (Not applicable to crypto) 2 - The Market Has Three Trends 3 - Trends Have Three Phases 4 - Trend Continues Until a Reversal is Confirmed 5 - The Averages Must Confirm Each Other 6 - Volume Confirms the Trend 📊 Principle 3: Three Phases in Every Trend According to Dow Theory, each major market trend is divided into three distinct phases: 1️⃣ Accumulation In this phase, large and informed investors begin buying or selling assets at favorable prices. These groups consist of individuals and institutions with significant knowledge and financial resources, often acting contrary to the majority of the market. While most market participants may not yet notice price changes, these informed investors are positioning themselves to benefit from future market movements. 2️⃣ Public Participation At this stage, most investors start recognizing the trend and begin participating in the market. The trend accelerates as public attention increases, and new capital flows in. This phase is typically characterized by a sharp rise in prices during a bull market or a sharp decline during a bear market. 3️⃣ Excess or Fear In this phase, participants jump into trades out of fear of missing out on profits or due to panic over further losses. This phase often signals the nearing end of the major trend and is usually followed by a reversal or change in trend direction. 💡 Principle 4: Different Indexes Must Confirm Each Other This principle states that the overall market trend must be confirmed by various indexes. It means that a bullish or bearish market trend can only be considered valid if other key indexes are moving in the same direction. 🔍 Example: To confirm a bullish market in a country like India, all major indexes, such as Nifty, Sensex, Nifty Midcap, and Nifty Smallcap, should be moving upward. 📝 Important Note: These principles were developed over a century ago, and it is natural that with today's diverse financial markets, there are varying views on their application. ⚠️ Please remember that these lessons represent our personal view of the market and should not be considered financial advice for investment.
Education
by DreamAnalysis
1
DreamAnalysis | Technical Analysis Dow Theory EP01📚 Welcome to the Educational Content Section of Our Channel: Technical Analysis Training We aim to produce educational content in playlist format that will teach you technical analysis from A to Z. We will cover topics such as risk and capital management, Dow Theory, support and resistance, trends, market cycles, and more. These lessons are based on our experiences and the book The Handbook of Technical Analysis, as well as our learning and insights from the Trade City Pro channel. 🎨 What is Technical Analysis? Let’s talk a bit about technical analysis and patterns in life. Technical analysis is not a science; rather, it is an art. Therefore, there is no right or wrong in art. Instead, we apply rules we have created through experience in this lawless market. 📊 Introduction to Dow Theory : Today, for the first part of our lessons, we will begin with Dow Theory, which was developed by American journalist Charles Dow. Many traders still use this method for analysis and trading. 📑 Principles of Dow Theory : 1 - The Averages Discount Everything (Not applicable to crypto) 2 - The Market Has Three Trends 3 - Trends Have Three Phases 4 - Trend Continues Until a Reversal is Confirmed 5 - The Averages Must Confirm Each Other 6 - Volume Confirms the Trend 💵 Principle 1: Price is All You Need Dow's theory operates based on the "Efficient Market Hypothesis," which assumes that the price of assets reflects all available information. In other words, this approach contrasts with behavioral economics. Factors like earning potential, competitive advantage, management competence—all are accounted for in the price, even if individuals do not know all the details. In more precise readings of this theory, even future events might be reflected in the current market price. 📊 Principle 2: The Market Has Three Types of Trends According to Dow Theory, price movements in the market are trend-based, and these trends can be divided into three types: 1 - Primary Trend: This is the main movement of the market, dictating the long-term direction, and can last for years. 2 - Secondary Trends: These are corrective movements that run opposite to the primary trend. For instance, if the primary trend is bullish, the corrective trend will be bearish. These trends can last from weeks to months. 3- Minor Trends: These are the daily price fluctuations in the asset. Although minor trends can last for weeks, their direction will always align with the primary trend, even if they contradict the secondary trend. 💡 Final Thoughts for Today : This is the end of this part, and I must say we have a long journey ahead. We will continually strive to produce better content every day, steering clear of sensationalized content that promises unrealistic profits, and instead, focusing on the proper learning path of technical analysis. ⚠️ Please remember that these lessons represent our personal view of the market and should not be considered financial advice for investment.
Education
by DreamAnalysis
1
NZDUSD - Technical Analysis [Long Setup]🔹 NZDUSD Analysis on 1HR chart - The current Trend is Bullish - Bullish Divergence is Present - No Reversal pattern - Waiting for a Break of Structure for Confirmation 🔹 Trade Plan - Entry Level = 0.61647 - Stop Loss = 0.61072 - TP1 = 0.62223 - TP2 = 0.62802 🔹 Risk Management - First TP is 1:1 - Second TP is 1:2 🔹 How to Take Trade? - Only risk 2% of your portfolio - Take 1% risk entry with 1:1 RR - Take 1% risk entry with 1:2 RR Like and subscribe to never miss a new idea! ✌🏼
Long
by Bountysoul
UPS looking DOWNSNice head and Shoulders on the United Parcel Service #UPS and FEDEX are the new dow transport indicator. An underlying determinant of how the consumer is faring Since the US is a consumer economy and Online shopping is the majority of retail if we see new highs on the Indicies, and the home delivery carriers continue to deteriorate it would give your non confirmation Top Similar to Dow theory of new High's in the Industrials , but the transports lagging and indeed falling.
NYSE:UPSShort
by BallaJi
12
USDCAD - Sell Stop on Break of Previous Higher LowTrade Analysis Currently, there is a bearish divergence and 4-hour resistance indicating a potential trend reversal to bearish. Confirmation of this reversal will be evident if the price breaks the previous HL. As it breaks the HL, it will also break the support levels. Consequently, this support will turn into resistance and will be used as the SL. Trade Plan Entry: 1.37012 Stop Loss (SL): 1.37095 Take Profit 1 (TP1): 1.36929 Take Profit 2 (TP2): 1.36846
Short
by asadamalik
In-Depth Arbitrum Analysis: Current Trends & Insights✨Welcome to my channel. Here, we conduct a daily analysis of crypto projects and forex pairs. 📅Let's dive into today's analysis, focusing on the crypto market and the Arbitrum project. 🗂 About the Project : Arbitrum is a blockchain project in the crypto space, known for being one of the popular Layer 2 Ethereum solutions. It helps reduce transaction fees and increases speed and security. Arbitrum launched as a Layer 2 blockchain in August 2021 and also conducted a major airdrop, which significantly boosted its popularity over its competitors. 📦 Arbitrum Airdrop : In March 2023, Arbitrum introduced the ARB token and simultaneously airdropped 12.75% of the tokens to its users. This large distribution excited many in the crypto community. 🏅 Airdrop Impact : The airdrop significantly increased trust in the blockchain. Currently, Arbitrum has around $3 billion in TVL (Total Value Locked) and ranks fifth in the market. Its token has a market cap of $2.3 billion and holds the 41st position on CoinMarketCap. 🌱 Project Ecosystem : Given the high TVL, Arbitrum's ecosystem is very active. Major platforms like AAVE, GMX, UNISWAP, PENDLE, and RENZO support this blockchain. There are also specialized platforms that operate solely on Arbitrum, such as Camelot, a DEX that has greatly contributed to the project's growth. 🗡 Camelot Project : As mentioned, Camelot is one of the exclusive projects in the Arbitrum ecosystem. It is a DEX where you can swap tokens in a decentralized manner and become a Liquidity Provider to earn rewards. 📈Here is the chart for the GRAIL token, Camelot's official token. Camelot rewards you with this token for providing liquidity. As you can see, after hitting the resistance at 2675 and breaking the upward trendline, the price entered a downtrend, dropping to 709 and forming key levels at 1008, 1252, and 1418, which could act as strong barriers to price growth. ⚡️Now that we have reviewed the project and its ecosystem, let's analyze the ARB token chart from a technical perspective. 📅 Weekly Timeframe In this timeframe, after the token launch and airdrop, the price pumped initially and corrected to the 0.7654 level. Alongside Bitcoin, it started an uptrend reaching 2.1782. The price tested this resistance several times but failed to establish above it. Following the entry of selling volume, the chart exited the Distribution Zone and started to drop, now even losing the 0.7654 support and reaching 0.6482. 🛒If you had already bought this token, I hope your stop-loss was triggered. If not, I hope you managed your investment well to avoid significant losses. For spot purchases, I would wait for the RSI to break above 34.79 to confirm that the downward momentum is out of the market. Afterward, we can buy based on our personal strategy once the price stabilizes above key levels. 📅 Daily Timeframe In this timeframe, after reaching the 0.6216 support, the price is correcting upwards with decreasing volume, indicating the strength of the downtrend. Despite the RSI losing the 40.13 resistance, upward momentum has not entered the market. This is because the SMA25 is directly above the price, serving as a major resistance. 📉If the SMA25, which coincides with the 0.7654 resistance, pushes the price down, it could reach the S1 pivot monthly level. Should the price continue to make lower highs and drop further, the 0.4826 level (S2 pivot) would be a logical target. 📈If the price stabilizes above the SMA25 and breaks through the 0.7654 level, with increased buying volume and upward momentum, we can confirm an uptrend in this timeframe. 🔑 Key levels in the daily timeframe for ARB are: Supports at 0.6216 and 0.4826 Resistances at 0.7654, 0.9264, 1.2669, and 2.1782 ⌛️For short-term analysis of this token, let's move to the 4-hour timeframe for more detailed insights. 🔍In the 4-hour timeframe, we can observe a Low Wave Cycle. After hitting the 0.6263 support, the price has made higher highs and lows twice. According to Dow Theory's definition of an uptrend, we can say this timeframe is in an uptrend. However, we must also consider another crucial point. According to Dow Theory, volume should confirm the trend and align with the price. As seen in the chart, volume diverges from the price, so we cannot declare an uptrend in the 4-hour timeframe as it lacks the primary Dow Theory confirmation. 📈For an uptrend, I suggest waiting for the price to stabilize above 0.7654, a significant level observable in the daily timeframe. Additionally, buying volume should increase to gain Dow Theory confirmation, allowing us to trust the price rise. If the trend becomes bullish, the resistances ahead are 0.8449 and 0.9264. 📉For a market downturn, since higher timeframes are bearish, we can use riskier triggers to confirm the entry of downward momentum, as these risky triggers align with the trend and are more reliable. The risky trigger level is 0.6822, and the main support is 0.6263. Note that the 0.6822 trigger, being risky, is not entirely reliable, and there's a higher probability of fake moves and traps. If the market turns bearish, the target, as seen in the daily timeframe, would be 0.4826. ⚠️Please note that this is not financial advice. I'm simply introducing this project to you, and remember always to do your own research.
by itsparham96
1