Candlestick Charting is one of the most ancient forms of charting known to man, originating in Japan in the 17th Century through the development of the rice market in Osaka. Munehisa (Sohku) Honma is generally attributed to have developed the candlestick charting system and his analysis of these charts allowed him [...]

There were a number of inherent problems with Dow’s Theory that a lot of Dow critics were, and still are, quick to point out. In order to provide a completely unbiased and full picture of Dow’s Theory – it is often useful to be aware of some of the limitations that [...]

Volume is an important indication of total pressure on the market from buyers and selling interchanging trades. Rhea specifically noted that Hamilton also analysed volume statistics in addition to Price – but only ever as a secondary confirmation tool. Rhea noted that volume was only ever useful for identifying the strength [...]

When Dow Theory was first being developed at the start of the last century, the Railroad and Industrial averages were the most important link in economic overview. Dow originally only constructed one market average incorporating both the Industrial and Railroad stocks and then later split both these averages into two [...]

As previously stated, there are instances in which Rhea’s definitions of a bull and a bear trend can be questioned. The most typical circumstance in which this occurs is during market crashes and upsurges. It is critical to realise that this logic is only applied when using Dow Theory and all [...]