股票外汇技术分析英文版().pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * THE DOW THEORY Oldest but still the most popular technical - technique. Basically a CHARTING approach and was founded by CHARLES H. DOW, a co-founder of the Dow Jones Company and an editor of the Dow Jones owned newspaper - The Wall Street Journal. FEATURES OF THE THEORY It is absolutely technical in nature in the sense that it is built upon and concerned with only market data or market actions. It is a chartist approach. It assumes that the majority of shares follow the underlying trend of the market most of the time. In order to measure “the market”, two indices are used - one is INDUSTRIAL AVERAGE which is a combination of some blue-chip shares from industry and another is TRANSPORTATION AVERAGE which consists of shares of transport companies. The purpose of the second average is to reinforce the conclusions obtained from that of Industrial Average. It assumes that a trend should continue in effect until such time as its reversal has been definitely signaled. It assumes that the securities of the most established companies tended to go up or down in prices together. It believes that averages discounts everything. It intends to show the general trend/direction of the market as a whole and does not predict the direction of change in a particular security. THE DOW THEORY(continued…) THE DOW THEORY - THE BASIC PRINCIPLES The Dow Theory believes that the market moves in swings or moves which show some pattern. To make forecast and predictions, the Dow Theory identifies the following three movements which depict underlying trends and patterns: MAJOR/PRIMARY TRENDS first and the most important trend broad and overall trend that lasts for few years are usually caused by business cycles and intrinsic value of a security long term investors are usually concerned with it such trends are either BULLISH or BEARISH and they reflect the long-run direction of the market. THE DOW THE