Charles Dow's theory - page 25

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Nikolai Semko:

Take your time, Yusuf.
Boris Babayan, the father of Elbrus, is 87 and still working his ass off at Intel.

The main thing for you is to overcome your nicotine addiction. It's an addiction that destroys the blood vessels in the brain.

why at intel? he could work somewhere here... at least at rogozin, at roscosmos...

they say the salary there is good, somewhere around 1000 quid, with quarterly bonuses as well...

 
Nikolai Semko:

Take your time, Yusuf.
Boris Babayan, Elbrus's father, is 87 and still working his ass off at Intel.

The main thing for you is to overcome your nicotine addiction. This addiction destroys blood vessels in the brain.

There is an expression for Caucasian longevity, but there is no expression for Central Asian longevity.

 
Denis Sartakov:

Why at Intel? You could work somewhere here...

For the person you are referring to "here" means in Canada).

 
Denis Sartakov:

Why at Intel? You could work somewhere here... at least at rogozin, at roscosmos...

they say the salary there is decent, somewhere around 1000 quid, and there are quarterly bonuses as well...

I think he earns at least 10 times more at Intel.

 
Denis Sartakov:

Why at Intel? You could work somewhere here... at least at rogozin, at roscosmos...

They say the salary there is good, somewhere around 1,000 quid, with quarterly bonuses...

The main problem here is not the salary. Intel's main advantage is that they fund all research without limit only on demand. I remember Babayan asking our government for a very long time in the early 2000s for several hundred million dollars to develop and start producing their own processors.
They didn't give him one.
As the result in 2004 or 2005 he left for Intel where he had been called for twenty years.
And as the director of architecture of a large Intel division he earns at least 500 times more than 1000$ a month, I think. At any rate, I'd be surprised if it was less.

 
khorosh:

For the person you're referring to "at our place" means in Canada).

No, when I say "us", I mean Russia.
 
Yousufkhodja Sultonov:

Dow himself gave it: "The market takes into account everything!" and has actually used this statement in trading. It couldn't be simpler, nor can it be expressed!

Where it all started

The principle itself appeared in the nineteenth century. As you may have seen earlier, the founder of the theory is Charles Dow - a journalist and researcher from America, and co-founder of the company called Dow Jones and Co. He is best known as the founder of the popular Dow Jones index. Even today, this index is one of the most important instruments with which the entire world economy deals.

What is surprising is that his principle for forex trading came into use after his death, and after some adaptations. The method was refined by people such as Hamilton, Nelson, Schaefer and others. Already after that, the method was called the Dow Theory, while during the creator's lifetime there was no such name.

A large part of his time was spent on the analysis of the American stock market. Using the data obtained during the analysis as a base, he developed a basis for creating his method. Charles's goal was to find some mathematical regularities in the change of stock quotes. To do this, he took a long time to look at and analyze the charts reflecting the movement's quotes. All his analyses and observations are reflected in the modern Dow Theory.

Charles' followers have managed to take out of context and form six postulates according to which his approach functions. Let's talk about each statement separately.

The market takes everything into account.

This is the first and key postulate. This statement is still one of the most important rules of price formation in the market. It means that everything from technical reasons to players' psychology influences the price. The market environment takes into account all of the numerous factors and traders should always keep this in mind.

3 trends and 3 trend phases

The second and third postulate of Dow theory is related to market trends.

The market includes three types of trends. There is a concept of market trend in the method. The authors explain the concept as follows: a trend line is a price movement in which every new high is higher than the previous one or a new low will have a location lower than the previous low.

  • A primary (long-term) trend is one that is formed over a long period of time (several years).
  • A secondary (medium term) trend is a trend that develops over a few months.
  • A small (short-term) trend is a trend that will form in a short time: a few weeks, days, or hours.

Each long-term trend can be divided into certain phases which have their own development stages. Like any cyclical system a trend has a kind of a starting point, a climax and a conclusion.

  • The first phase is the accumulation. In this time period very few players are aware of the new trend. At this point they create transactions with a small volume compared to the market volume. During this period, the price is almost unchanged, the players can not act as a significant price driver.
  • The second phase is participation. During this phase the trend begins to form. At this moment deals are opened in large quantities. This is done by market players as soon as they understand that a trend has formed. Opening a large number of transactions leads to an increase in the trend, which in turn affects the price, which begins to change rapidly.
  • The third phase is the realization phase. This is the final part of the trend, which implies reaching a maximum or minimum price value. During this period, a large number of assets are sold and large price spikes are recorded. Investors who have a lot of experience in this period close their positions that were opened during the previous phases. They do so because they have an understanding of the oversold and overbought areas of the market. Usually, after that there is a pullback in the opposite direction.

Indices are obliged to agree.

The fourth postulate of the theory states that all stock market signals, indices must be confirmed. At the moment of making any decision, Forex traders take into account some signals. The signals give different indicators or show the dynamics of a particular market segment. These signals are also mentioned in Charles' theory. It says that these signals should be compared with each other, and that they can only be used when the changes in the indicators are not contradictory.

Trading volume supports the trend

According to Mr. Charles's fifth postulate, any trend should be supported by the trading volume. To be sure of the formation of a trend, you should compare the dynamics of trading volume in Forex and the price dynamics. A change in the same direction will tell the trader that this is a real trend. If the price changes and the trading volume does not change, we can conclude that we are witnessing an ordinary trend with unknown reasons. And this will not herald any change in the global trend.

Signal of a trend reversal

The sixth postulate of Dow says that no trend is complete until there is a reversal signal. This postulate is considered the most accurate of all the statements described in Senor Charles' approach. However, few people know how to use it correctly. In the technical analysis by this method, you should not make deals against the current trend and try to predict the moment of its reversal. Such transactions do not promise anything good. The market will signal to you itself about the reversal, you just have to watch it carefully. It is better to lose only a part of your profit in the beginning of trading, than to incur continuous losses due to ignorance and baseless trades. Stick to the Dow method and open trades in the current trend, not against it. You should always do this, even if you see prices changing in a different direction. Such moments should be perceived as a correction and not a trend change.

Hi buddy!!!

Everything is much simpler Glenn Neely and after defining mono make a layout according to the Dow knowing the x-waves and their features create Tabla type + mat calculation = current and future with corrections for inconsistencies to highlight areas or zones - this is the way of the future, but everything is theoretical. Yes and also if combining it is necessary to take into account the range as you want it will be a step or Time, where the first is much clearer and on the basis of it you can also calculate Time. In this case, we can determine the time zones of both reversals and trends taking into account the minimum step in searching for X - the starting point. Further, we only need to model trade Limits and distribute them to sections and zones = test + calibration of non-consistent sections / report to the Table / and fill them to consistency of at least 90%, then we may start to work... ./

 
Yousufkhodja Sultonov:
Wait for the end of the full-scale experiments on the real market.


There will be a CloseAtStop, in short a depot drain.

 
Evgeniy Chumakov:


There will be a CloseAtStop, in short a depot drain.

This is true, but it will be the market, the broker, the mq or the Doctor's fault
 
There is an urgent need to start breaking the back of the market.
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