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higher bottom to higher top is bullish market
lower top to lower bottom is bearish market
By using line chart look for Top, Higher bottom, higher top, lower top and lower bottom.
If line chart shows good volume with either
Higher top and higher bottom – Bull
Lower top and lower bottom – bear
Use daily chart of minimum 2 years. Look for tops and bottoms. at high & low points look if volume is there. Understand if the trend is bullish or bearish.
On bullish – buy
On bearish – sell.
By identifying top and bottom sequences as per dow theory and buy when there is HB – HT sequence with the previous HT as stop loss and create short position when there is LT-LB sequence with the previous LB as stop loss
Market trend can be determined by taking 2 years data of the stock , mark the tops and bottoms in the line graph comparing the previous position mark tops and bottoms as higher / lower ( tops / bottoms ) as HT HB , LT LB . In this HT HB Is the condition for bullish and LB LT is the condition for bearish .
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