When did the Dow Jones stock market start? May 26, 1896 First calculated on May 26, 1896, the index is the second-oldest among U.S. market indices, after the Dow Jones Transportation Average. It was created by Charles Dow, co-founder of both The Wall Street Journal and Dow Jones & Company, and named after him and his business associate, statistician Edward Jones
Dow believed that the stock market as a whole was a reliable measure of overall business conditions within the economy and that by analyzing the overall market, one could accurately gauge those conditions and identify the direction of significant market trends and the likely direction individual stocks would take.
Aspects of the theory have lost ground—for example, its emphasis on the transportation sector and railroads—but Dow's approach forms the core of modern technical analysis.
How the Dow Theory Works There are six main components to the Dow Theory.
1. The Market Discounts Everything The Dow Theory operates on the efficient market hypothesis (EMH), which states that asset prices incorporate all available information.
Earnings potential, competitive advantage, management competence—all these factors and more are priced into the market, even if not everyone knows all or any of these details. In more strict readings of this theory, even future events are discounted in the form of risk.
2. There Are Three Primary Kinds of Market Trends Markets experience primary trends which can last a year or more, such as a bull or bear market. Within the broader trends, secondary trends make smaller movements, such as a pullback within a bull market or a rally within a bear market; these secondary trends can last a few weeks to a few months. Finally, minor trends can last a few days to a few weeks. These small fluctuations are considered market noise.
3. Primary Trends Have 3 Phases According to the Dow Theory, the primary bull and bear trends pass through three phases.
A bull market's phases are the:
Accumulation phase: Prices rise alongside an increase in volume. Public participation (or big move) phase: Retail and average investors begin to notice the upward trend and join in—generally, this is the longest phase. Excess phase: The market reaches a point where experienced investors and traders begin exiting their positions while the larger average investing population continues to add to their positions.
4. Indices Must Confirm Each Other For a trend to be established, Dow postulated indices or market averages must confirm each other. This means that the signals that occur on one index must match or correspond with the signals on the other. If one index, such as the Dow Jones Industrial Average, shows a new primary uptrend, but another remains in a primary downward trend, traders should not assume that a new trend has begun.
Dow used the two indices that he and his partners invented, the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA), on the assumption that if business conditions were healthy—as a rise in the DJIA might suggest—the railroads would be profiting from moving the freight this business activity required; thus, the DJTA would also be rising
5. Volume Must Confirm the Trend Trading volume generally increases if the price moves in the direction of the primary trend and decreases if it moves against it. Low volume signals a weakness in the trend. For example, in a bull market, buying volume should increase as the price rises and falls during secondary pullbacks because traders still believe in the primary bullish trend. If selling volume picks up during a pullback, it could be a sign that more market participants are turning bearish.
6. Trends Persist Until a Clear Reversal Occurs Reversals in primary trends can be confused with secondary trends. It is difficult to determine whether an upswing in a bear market is a reversal or a short-lived rally followed by still lower lows. The Dow Theory advocates caution, insisting that a possible reversal be confirmed by comparing indexes.
wrote about financial markets in the early decades of the 20th century at the same time as Charles Dow and other iconic market analysis figures.
His pioneering approach to technical analysis known as the
Wyckoff Method
has survived into the modern era.
It continues to guide traders and investors in the best ways to pick winning stocks, the most advantageous times to buy them, and the _most effective risk management techniques to use._
Wyckoff’s observations on price action coalesced into what’s known as the Wyckoff market cycle
It’s an understanding that outlines key elements in price trend development that are marked by periods of accumulation and distribution.
Wykoff also defined rules to use in conjunction with these phases.
These rules can further help to identify the location and significance of prices within the broad spectrum of uptrends, downtrends, and sideways markets.
KEY TAKEAWAYS
The Wyckoff Method
is a technical analysis approach that can help investors decide what stocks to buy and when to buy them.
The Wyckoff market cycle reflects Wyckoff’s theory of what drives a stock’s price movement.
The four phases of the market cycle are accumulation, markup, distribution, and markdown.
According to Wyckoff’s rules, a price trend never repeats itself exactly and trends must be studied in context with past behavior.
The Wyckoff Method can help investors make less emotional, better-informed decisions about when to buy and sell stocks.
Top glove free warrant listing on 04 Feb 2025, Supermax EGM on 05 Feb 2025, mean supermax bonus and free warrant some where 3rd week or end of feb 2025. Hoseh liao
To understand on price movements/ then only can interpret on its technical behaviour
A. High prices occur in 27 , 30 , 31 December 2024 / peak is RM 1.35 on 30 , 31 December 2024
The current peak prices / RM 1.35 are done in 30 , 31 December 2024 ( formation of double top formation / means RM 1.35 is the strong resistance level from Wyckoff Method)
on the first day of trading in January 2025 / this year = 2 January 2025 / first day of trading for 2025 ___it has not been able to challenge on RM 1.35 and
from 3 January 2025 / Friday onwards ___ it starts with gradually sliding downwards movements to 10 January/ Friday __ day low is RM 1.13
Technical chart and analysis __ from 3 January to 10 January / Friday to Friday / week to week closing
Low is = lower low High is = lower high Technically not healthy turns downtrending from 27 Dec 24 / Fri to 10 Jan 25 / Fri
To be uptrending week to week Need to have this scenario Low is higher low High is higher high
Want to buy faster buy . Don't always time the market and hope to buy at the bottom . Hope can become hopeless. . This year Supermax will definitely become Superman .
Despite reducing my stake by 76% fr $1.20-$1.35 & then increasing it by 13% 2 days ago, I still have more shares than I owned in Dec '21 so I know what it's like to hold calmly in the firm conviction that the co. will deliver eventually.
The financial markets including KLSE __ WILL PUNISH THE MOST STUBBORN CHARACTERS ___ HAVE NO RESPECT FOR THOSE WHO HAVE HIGH FINANCIAL STANDING OR LOW STANDING IN HIS LIMITED FUNDS.
One special highlight with wisdom from my high nett worth clients __ on cash basis
Quote ______ Every day we can buy stocks in KLSE __ from Monday to Friday __ except Saturday and Sunday and public holiday
AND NOT EVERDAY WE CAN SELL AS THE PRICES ALREADLY DETERIORATED KAW , KAW , KAW
Hi fellow investors, pardon me as I'm rather new in investing. Can I understand that if the Bonus and Warrants are approved, do shareholders get this automatically debited into their CDS account or do we have to "apply" for these?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Alistino G
793 posts
Posted by Alistino G > 2 weeks ago | Report Abuse
𝐍𝐞𝐰𝐬 𝐨𝐧 𝐀𝐆𝐌 𝐝𝐚𝐭𝐞 𝐢𝐬 𝐨𝐮𝐭.