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  • Atricle Dump - Currency Technical Analysis Part 2: Dow Theory - Three Phases of the Trend

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    o be understood to make big money – and you need to focus on just the long-term trends.

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    In part 1 of this series of articles: “Currency Technical Analysis Part 1: The Most Important Theory Ever” we discussed the general background to the Dow Theory.

    Here we look at the three phases of the trend, and why currency-trading analysis must focus on the long-term trend - and how Dow Theory will help you capture every major trend.

    Currency Technical Analysis – Market Discount

    Dow Theory is based upon the classic view of currency technical analysis - that markets discount everything.

    While Dow Theory accepts that the unexpected can always occur in the short term - the longer trend is unaffected - and if you think about it, this is true.

    Central banks and geo political concerns can spike prices unexpectedly - but their influence tends to be short, rather than long term.

    Currency technical analysis needs to be understood to make big money – and you need to focus on just the long-term trends.

    The market reflects all available information - everything there is to know is already reflected in the markets - throug

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    and why currency-trading analysis must focus on the long-term trend - and how Dow Theory will help you capture every major trend.

    Currency Technical Analysis – Market Discount

    Dow Theory is based upon the classic view of currency technical analysis - that markets discount everything.

    While Dow Theory accepts that the unexpected can always occur in the short term - the longer trend is unaffected - and if you think about it, this is true.

    Central banks and geo political concerns can spike prices unexpectedly - but their influence tends to be short, rather than long term.

    Currency technical analysis needs to be understood to make big money – and you need to focus on just the long-term trends.

    The market reflects all available information - everything there is to know is already reflected in the markets - throug

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    the classic view of currency technical analysis - that markets discount everything.

    While Dow Theory accepts that the unexpected can always occur in the short term - the longer trend is unaffected - and if you think about it, this is true.

    Central banks and geo political concerns can spike prices unexpectedly - but their influence tends to be short, rather than long term.

    Currency technical analysis needs to be understood to make big money – and you need to focus on just the long-term trends.

    The market reflects all available information - everything there is to know is already reflected in the markets - throug

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    u think about it, this is true.

    Central banks and geo political concerns can spike prices unexpectedly - but their influence tends to be short, rather than long term.

    Currency technical analysis needs to be understood to make big money – and you need to focus on just the long-term trends.

    The market reflects all available information - everything there is to know is already reflected in the markets - throug

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    o be understood to make big money – and you need to focus on just the long-term trends.

    The market reflects all available information - everything there is to know is already reflected in the markets - through the price.

    Prices therefore represent the total of all the hopes, fears, and expectations, of all the participants in the market.

    Interest rates, presidential elections, employment, consumer confidence - and everything else, is already priced into the market.

    Short Term Moves should NOT be traded

    The unexpected will often occur, in any form of currency technical analysis - but this will normally affect the short-term trend - but the primary trend will remain unaffected.

    With this in mind, Dow Theory accepts limitations - but if you focus on the longer term trend, and trade with the odds in your favor, you can be a winner.

    Look at any currency chart and you will see:

    In currency technical analysis, primary trends tend to last for months or years.

    This is why Dow Theory is so applicable to currenc

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