Dow Theory for the 21st Century (Jack Schannep, 2008)

  • Secondary reaction are the most deeeptive movement and will generally retraces 33% to 66% of the primary change of price.
  • Bull Market Buy Signals
    1. Market lows.
    2. Bounce.
    3. Pullback (hold above the lows). 
    4. Break up (above the bounce high).
  • Bear Market Sell Signals
    1. Market highs. 
    2. Pullback. 
    3. Bounce (to below the highs). 
    4. Break down (below pullback).
  • Phenomenon
    • Volume peak: bull market
    • Inverted yield curve: bear market
    • Consumer confidence: typically rise

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