This is what happens in a medium time frame – anywhere from ten days to three months. The secondary or intermediate movement of a market is called the medium swing. The main movement can be bullish or bearish. It is the major trend in the market and can last anywhere between a year and several years.
The main movement of a market is called the primary movement. Read on to learn more about each of the tenets. Trends exist until it is shown that they have ended.Stock market averages must confirm each other.The market incorporates new information as soon as it becomes available.The major market trends have three phases.The Dow Theory rests on six essential tenets: Being able to recognize the patterns of the market makes it possible to predict market behavior. This means that a market analyst can focus on the price of a coin, rather than every single variable that moves the price of a coin.Ĭrypto markets go up and down in particular patterns. The current asset prices are a reflection of all existing, prior, and upcoming details of the stock. The Dow Theory can also be applied to the crypto market.Īccording to the Dow Theory, the market considers everything during its pricing. The primary market trend is then used to make trading decisions. It provides signals that can be used to identify the primary market trend. Different Time Frames for Crypto ChartsĪt a high level, Dow Theory describes market trends and how they typically behave.