I get a trend in technical analysis - Dow theory for beginners of FX

I get a trend in technical analysis - Dow theory for beginners of FX

If an FX beginner has you read after it was trained in virtual FX, I am happy. It is important that I learn the prediction theory of the market I make money in stock, futures, FX and to minimize a loss.

I think that a beginner of FX can understand it about generous contents of the technical analysis here to easily explain it. At first it is from "Dow theory". The article that economist Charles Dow contributed the Dow theory to "The Wall Street Journal" paper in 1884 became the base and it was wide and came to be known as a theory in a stock, futures, the exchange.

Dow is the one where it introduced a way of thinking of the average into first, but it is a closing price of two average of the industrials average / transportation stock average that is used in Dow theory. The thing that is important by a way of thinking of the Dow theory with a thought of the average is that the market trend that began once continues till it is turned over.

It is the theory to be able to put of the stock prices, but it is originally applied in FX. When it is easy to understand for an FX beginner more, and it comments, it is that "a rise trend is continued unless a phenomenon to reverse it occurs if a trend of "the rise" starts in the exchange rate once".

When the FX beginner "follows unless there is a trend at a market, and a specific phenomenon occurs", please memorize it.

It is the theory about the trend, but there is three wave motion (a trend) at a market successively. A long-term trend, the correction trend are 3, too. Furthermore, as the movement that is smaller than a short term, there is the daily change.

The long-term trend continues for from 1 year to several years. A correction trend to continue for from 3 weeks to several months is a trend I am the most important and and I force it whether a prediction is a difficulty. Of short-term trend and days when is changed, a prediction is easy to come off, and there are not many meanings, but it is it in the element which is important for the FX beginner that it is it day-trading in Maine if watch it for a long-term investor.

There is selling of the actual demand after no matter how much having fallen by the theory of the foreign exchange rate that is an object of FX, and there is the thing that buying it stays of the actual demand after no matter how much having risen. Therefore please check it even if to be the domestic stock prices was a pattern such as the bottom kneading on fire because I can come back to the original trend in the foreign exchange rate.

A success theory to the FX beginner "should pay attention to a long-term trend about the assets maintenance that there are three trends, and it predicts the correction trend that it is difficult, and is steady, and the market make money". "


The content that is necessary for a beginner of FX in Dow theory is that it "is it in a rise trend when it is it and rises to the drop trend when maximum and minimum drop in succession". In the system trade, it is necessary for such a theory to be implemented by an automatic buying and selling tool.

In addition, as for the expert of FX, there is much one made a tool by oneself because an error is big for a short term as for the trend. The person that it wants to be learned Dow theory in earnest recommends that it is taken a look at a commercial book by all means.

Among Dow theory, I gathered up the part which a beginner of FX wanted to learn as things mentioned above.

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