https://www.tradingview.com/chart/XSsAXP62/
In his book, "Trend Analysis of Financial Markets", Jhon Murphy explained Dow Theory in his first chapter. One of the topics he mentioned is "Averages Must confirm Each Other". Meaning that "no important Bull or Bear Market signal could take place unless both averages gave the same signal".
Now, Dow Transport Average shows a potential Head and Shoulder pattern and not making a new high. While the Dow Industrial Average clearly stands at new highs.
I just a student and all I know is what is written in the books. Jhon Murphy's book is often referred to the "Bible" of technical analysis.
Trade with care and above all, trade well.
Thipp, again, If you read this. Thank you.
In his book, "Trend Analysis of Financial Markets", Jhon Murphy explained Dow Theory in his first chapter. One of the topics he mentioned is "Averages Must confirm Each Other". Meaning that "no important Bull or Bear Market signal could take place unless both averages gave the same signal".
Now, Dow Transport Average shows a potential Head and Shoulder pattern and not making a new high. While the Dow Industrial Average clearly stands at new highs.
I just a student and all I know is what is written in the books. Jhon Murphy's book is often referred to the "Bible" of technical analysis.
Trade with care and above all, trade well.
Thipp, again, If you read this. Thank you.