[Preview] The Trap of Dow Theory: The Terrifying Behind-the-Scenes of the Beautifully Appearing "Rising Reversal Signal"
This is Proto-Trade Coach Max.
FX textbook's1 page always writes "Dow Theory." This time, we will解説 the traps hidden in this universally known orthodox theory.
■【Lie①】 Dow Theory traps: behind the signs that look clean
Let me give concrete examples. The basic Dow Theory rule written in many textbooks: "buy entries when the swing lows are raised and the recent highs are clearly updated." A point that anyone would see as a clean buy signal indicating an uptrend reversal. However, from the perspective of market physics, unraveling this point reveals a completely different scene.
【Structure of the trap that the masses fall into】
A point that everyone can clearly recognize as an "upward reversal" is, in reverse, the place where large-capital powerhouses with enormous funds, who bought at the bottom phase that no one notices, dump sell orders to lock in enormous profits. Because their order sizes are so large, they cannot execute their positions unless it is the timing when the masses simultaneously place "buy orders."
In other words, at the exact moment you buy according to the textbook's "beautiful reversal," you are being used as the counterpart (the prey) for professionals to realize their profits.
What we should pursue is not後追い knowledge that waits for the surface-level "beautiful shapes." It is the skill to pinpoint the moment of the initial impulse when the market's energy of movement shifts, before the masses move. Theoretically correct answers and the actual market supply-demand correct answers are always180 degrees inverted, a fact you should engrain deeply in your brain.
Figure2: Dow turning points are not the market's correct answers
■For those who worry that they are conscious of Dow Theory but always moving in the opposite direction
If you are suffering from traps of the modern market, you must immediately release that "wrong common sense." On GoGoJian's listing『True RCI Reading Textbook~~ "When the lines align, entry" traps breaking, three professional foresight indicators~』now provides the essential essence that overcomes these Dow Theory pitfalls500yen to publish.2026 year’s market to autonomously win continuously, please obtain the "correct map."
Proto-Trade Coach Max