The name of this package is based on a combination of the terms “know-how” and “Dow Theory”, hence the catchy term “DowHow”.
As the name already reveals, this package is based on the simple principles of Charles Dow, which are listed below and have been adapted for today’s market environment:
- The price level indices and charts reflect all factors that influence the supply and demand.
- The market has three trends; a primary one (big picture), a secondary one (mid-term or superior) and a short-term (subordinate) trend.
- Trends have three phases.
- The trends must confirm each other.
- The volume must confirm the trend.
- A trend continuation is more likely than a trend break (taking the maturity of the trend into account)
Building upon these six central statements of the Dow Theory, the DowHow setup was created. It appears as soon as the price is in at least phase 4 (of a valid trend) in the superior timeframe (secondary trend) – in the middle and small trend – and is in phase 5 in the timeframe to be traded (subordinate trend).
This new Add-On represents a further milestone in stock exchange trading, and unites experiences from private and institutional trading. Buckle up, hold tight and prepare for the next revolution and evolution in technically-oriented stock exchange trading, based on the purest and most enlightening approach there is – the Dow Theory.
INFO: We recommend that you use this add-on with AGENATRADER ANDROMEDA.