tag:blogger.com,1999:blog-6134743053361487135.post3669130415025413989..comments2023-06-15T09:28:28.686-04:00Comments on Dow Theory Investment: Dow Theory signals a new primary bull market in gold and silver miners. IIThe Dow Theoristhttp://www.blogger.com/profile/05344444810007324303noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6134743053361487135.post-63767208895556364842023-05-21T01:44:25.108-04:002023-05-21T01:44:25.108-04:00In the book -- "Dow Theory for 21st century b...In the book -- "Dow Theory for 21st century by Jack Schanne " in Pg no. - 9 There's a line -- " For the purpose of this discussion, a rally or a decline is one or more daily movements resulting in a net reversal of direction exceeding 3 percent of the price of either average . Such movements have little authority unless confi rmed in direction by both averages, but confirmation need not occur on the same day. "<br /> So, only the upmoves with its high point 3% more than its low point is considered rally AND So, only the down moves with its low point 3% lesser than its high point is considered decline. The high and low points are called pivot points AND Higher highs and lows are these pivot points.<br /> Such series of Rallies with Higher-high and series of decline with higher low and vice-versa are majorly useful in ----<br />1) Appraising secondary reactions( though not all rallies and declines are secondary reactions)<br />2) Forecasting the -- a) Resumption of the Primary trend<br /> b) Continuation of the Primary trend<br /> c) Change of the Primary trend<br /><br /> Manuel Sir, Hope I am correct.<br />Regards,<br /> Farid, Indiaamanatkarthttps://www.blogger.com/profile/02972347705296427170noreply@blogger.comtag:blogger.com,1999:blog-6134743053361487135.post-12652167145882995532012-10-16T08:05:13.277-04:002012-10-16T08:05:13.277-04:00Hi bstart
First of all, the Dow Theory doesn’t le...Hi bstart<br /><br />First of all, the Dow Theory doesn’t lend itself well to being programmed because there is lot’s of room for human judgment. And this is a good thing. All reputable Dow Theorists have spoken of “weighting the evidence." <br /><br />What I have accomplished, it to write code that reflects primary bull and bear markets conditions. However, the ascertainment of primary bull and bear markets has been made by a human being. <br /><br />Rallies and declines (in Rhea’s terminology) are the minor movements not to be confused with the secondary movement. Sometimes they have been called “tertiary” movement. Thus, the 10 trading days minimum requirement applies for a secondary reaction to exist, not to rallies and declines. Secondary reactions by definition are secondary movements against the primary trend. <br /><br />“Higher highs and lows” means that it is noticeable to the eye that each “pivot” tends to be higher and not lower. <br /><br />The 3% minimum requirement for a movement to be meaningful applies only to stocks. When dealing with other markets with different volatility I conduct adjustments. A 6% movement in gold has more relevance than a 6% movement in silver, given silver's higher daily volatility. This post in this blog explains further volatility adjustments for non stock market. <br /><br />http://www.dowtheoryinvestment.com/2012/10/dow-theory-update-for-oct-15-no.html<br /><br />I strongly recommend the reading and sweating of the three books I mention here.<br /><br />http://www.dowtheoryinvestment.com/p/dow-theory-basics.html<br /><br />Sincerely,<br />The Dow Theoristhttps://www.blogger.com/profile/05344444810007324303noreply@blogger.comtag:blogger.com,1999:blog-6134743053361487135.post-14933301433651710672012-10-16T05:23:08.046-04:002012-10-16T05:23:08.046-04:00Hi Dow Theorist,
When you say "In each rally...Hi Dow Theorist,<br /><br />When you say "In each rally GDX and SIL are establishing higher highs and lows. " what do you mean?<br />Does a rally need to be net >3% and last 10 trading days to be considered rally or decline?<br />Can you pinpoint several highs, lows points for GDX.<br />I ask because i am in the process of writing code based on Dow theory.<br /><br />Thanks,<br />FilAnonymousnoreply@blogger.com