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it is not a short term and does not give the tops and bottoms of the future.
it remains top as it is the first proposed theory of all to derive the demand and supply.
It is against for short term trading.
It remains top of any analysis,because it says to follow the market trends not fundamental analysis
It provides the basic understanding of market in terms of Demand and Supply, which is fundamental to any other form of analysis. Thus it manages to hold a good stand among other form of analysis; although it only determines the current trends but fails to determine the characteristic of market i.e., whether it will be dominated by buyers or sellers etc.
The major draw back of Dow theory is, it does not explain the price behavior of the stock/securities. But still the Dow theory remains on the top as the core of the Dow theory analysis considers supply – Demand which plays the key role in the technical analysis. All theories that have evolved today has taken Dow theory as their base and no one could contradict his theory.
<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>It provides the basic understanding of market in terms of Demand and Supply, which is fundamental to any other form of analysis. Thus it manages to hold a good stand among other form of analysis; although it only determines the current trends but fails to determine the characteristic of market i.e., whether it will be dominated by buyers or sellers etc.</span>
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