A little too rich this analysis may be for some of us who may be beginner in TA, but had to be done.
A textbook perfect, classic Dow Theory, Short (1st), Medium-Intermediate (2nd), Major(3rd) TF trend definition on display with this GEAR ETF Weekly Chart. In order for us to have a 3rd TF higher trough (HT 3rd) we must have a 2nd TF confirmed down trend. That is highlighted with Green rallies and reactions. That HT of 3rd TF is now confirmed ( 3 weeks ago) but the lowest point of it hasn’t as yet.
One may also bring Elliot Wave into this analysis and start counting the waves if they wish. That is also fine.
When an engineer is made in charge of a Dow Theory, what could he/she do ? Try and perfect it and Dow Theory has a new name called EW in his/her head.
What is the difference between Toyota & Lexus or Dow Theory & EW ?
Lots of subjectivity in TA as we all know.
This analysis may have little or no practical use at all, I must admit. A little homework may unveil how it may be applied in practice. All I can say is that the MAJOR TREND is UP, MEDIUM TERM TREND is DOWN and SHORT TERM TREND is also DOWN. What is next ? No one knows to be frank.I am watching the zone of support shaded with Yellow.
Weekly GEAR chart below with Dow Theory markings.
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