Dow theory is a phenomenon which compares Dow Transports to the broader Dow Industrials. It tends to discount future events and can predict major moves in the market.
Assalamualikum friends i hop every is good. so over all marekt is bearish in a da timeframe but in a 4 hours or 1 hours market is bullish so you can take a trade as a day trader GOOD Luck :)
A relative comparison between the DJI, JNK & DJT is showing some underlying strength building in the market. This is also known as a "risk on" sentiment and that's when high risk assets do very well
I have done a 3 prong analysis on the Dow Transports VS the Dow Jones which are indicating a continued move down for the markets in the near future of 1-2 weeks. It could even be a crash.
*Yellow = 200 EMA | Blue = 100 EMA This video goes over the divergence between the DJ:DJI and DJ:DJT . Currently, the DJIA is trending upwards, setting new highs, and lows. However, contrary to this movement, the DJTA is moving downwards heading towards a trendline shown in the video, but could very easily break through that trendline. Why do I care? In...
Applying Dow Theory to GBPJPY. Dow Theory - www.investopedia.com