Dow Theory

Dow Theory, developed by Charles H. Dow in the late 19th century, serves as the foundation of modern technical analysis. It provides traders with a structured approach to understanding market trends, price movements, and investor behaviour. Though Dow never formally documented the theory, his editorials in The Wall Street Journal laid its groundwork. Over time, ... Read more

Average Directional Index (ADX)

The Average Directional Index (ADX) is a trend strength indicator that measures how strong a price trend is, whether upward or downward. Unlike other indicators, ADX does not indicate trend direction, only the strength of the trend. It is typically plotted along with +DI (Positive Directional Indicator) and -DI (Negative Directional Indicator) to determine trend ... Read more

Scalping

Scalping is an ultra-short-term trading strategy that focuses on capturing small price movements within a very short time frame, often lasting seconds to minutes. Scalpers aim to make dozens or even hundreds of trades per day, accumulating small profits that add up over time. Since scalping relies on quick execution and low spreads, it is ... Read more

Bull Market

A bull market is when stock prices consistently rise over a long period, driven by strong economic growth and high investor confidence. It creates a positive trading environment where demand is greater than supply. Key Points: Example: NIFTY 50 rose from 7500 to 18,000+ in 2020-21.