dow_theory
Function Name: dow_theory
Tags: Dow Theory
Category: Cycles, Pattern
The ideas of Charles Dow, the first editor of the Wall Street Journal, from the basis of technical analysis today. He believed that the behavior of the averages reflected the hopes and fears of the entire market. The three movements are follows;
- The first is the daily variation due to local causes and the balance of buying and selling at that particular time (Ripple).
- The secondary movement covers a period ranging from days to weeks, averaging probably between six to eight weeks (Wave).
- The third move is the great swing covering anything from months to years, averaging between 6 to 48 months. (Tide).
Parameters:
PivotStrength: Minimal number of adjacent lower highs (higher lows) on each side of a high (low) for it to be declared a high (low) pivot.
UseLargeCorrectionCondition: If true, then a simple break above (below) previous lower high pivot (higher low pivot) will signal the end of the bearish (bullish) trend.
ShowZigZagLine, ShowTrendArea, ShowTrendMarks: Display control flags.
|
PivotStrength |
Minimal number of adjacent lower highs (higher lows) on each side of a high (low) for it to be declared a high (low) pivot. |
|
|
Default Value: 5 | Minimum: 1 | Maximum: 999 |
|
|
Type: Numeric |
|
UseLargeCorrectionCondition |
If true, then a simple break above (below) previous lower high pivot (higher low pivot) will signal the end of the bearish (bullish) trend. |
|
|
Default Value: -1 |
|
|
Type: Boolean |
|
ShowZigZagLine |
|
|
|
Default Value: -1 |
|
|
Type: Boolean |
|
ShowTrendArea |
|
|
|
Default Value: -1 |
|
|
Type: Boolean |
|
ShowTrendMarks |
|
|
|
Default Value: -1 |
|
|
Type: Boolean |