7 September 2016
New Stock Chartings
Charting software use to be install on your devices, such as desktop, notebook, tablet or mobile phone. These software are device dependent. You can trade without the device. However, the newer generation of charting software seem to move into you can trade on any device, any time, any where, as long as you have network access and internet. For example www.tradingview.com, and stockcharts.com. Check their respective link for details, https://www.tradingview.com/, and https://stockcharts.com/freecharts/.
Have fun!
Dow Jones Industrial and Transportation Charting
How Do You Interpret Dow Theory?
As an trader or investor, how do you interpret Dow Theory? You can expect DJI to increase when DJT increased. As all industry need transportation, therefore when DJT up DJI likely to be up, vice verse, when DJT down DJI is likely to be down too.
Of course the two indices may not move in the same direction at time, there may be time the two indices are in divergence. However, from the history, the DJI will soon join DJT in the same direction. So, it is always a good idea to check DJT when you are studying DJI.
A bit background on DJT and DJI
DJT was created in 1884 by Charles Dow. It is the oldest of the US stock indices. On the other hand, DJI was created twelve years later.
Dow Jones Transportation Average Weekly Chart
September 6, Dow Jones Transportation Average Weekly
Dow Jones Industrial Average Weekly Chart
Early we said, the two indexes are moving in the same, or similar direction. But the two charts seem to be not compatible to what we just said.
Look, look carefully, you will find DJI follow DJT has a sharp pullback. Except DJI had a bigger deep as compare to DJT.
September 6, 2016 Dow Jones Industrial Average Weekly Chart
Dow Jones Transportation Average With Moving Averages.
Let put in the great visual tool, moving average and see how.
September 6, 2016 Dow Jones Transportation Weekly and Moving Average
Dow Jones Industrial Average With Moving Averages
September 6, 2016 Dow Jones Industrial Average and Moving Averages
Dow Jones Transportation Average and Line Chart
If you cannot see the trend, turn to line chart with moving average. You should be able to see better.
September 6, 2016 Dow Jones Transportation Average with Moving Averages
Dow Jones Industrial Average and Line Chart
September 6, 2016 Dow Jones Industrial Average and Line Chart
So, DJT leads the way before DJI follow. True or true? Is this always true? Will see.
Moses US Stock Analysis
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