Dow theory

A Dow theory is a chart pattern which can be either bullish or bearish .
BULLISH DOW THEORY

• High is broken but low is not broken
  
• Higher high, Higher low
  
• If low is broken, Trend change
  

BEARISH DOW THEORY

• Low is broken but high is not broken
  
• Lower low, Lower High
  
• If high is broken, Trend change