The final form of the technical is Dow Theory; ultimately, Dow Theory is also a post hoc explanation

Technical is often said to be a post hoc theory, but

this is a discussion that becomes clear when considering Dow Theory, the final form of technical analysis

Dow Theory, when it finally takes its shape,

is proven to be correct for the first time as a theory

In other words, although you expect a U-shaped pattern

the market often continues in the opposite direction as is usual

In the end, once it takes that form, the theory is proven

and it can be said to be a so-called a priori theory

However, this a priori theory

is a trade concept that can be applied in technical analysis as well

In other words, you can’t escape a posteriori theory

An important point here is

precisely because it is a posteriori theory

how to focus only on the part of market profit and ignore the rest

People often filter this well in trading logic,

but filter-type approaches tend to lose more and miss opportunities for profit

and rarely function effectively as filters

Especially the filter-type claims often heard from information products or seminar sellers

When actually attempted, they end up reducing profits or failing to produce results

And somehow, in automated trading logic,

the only thing that still yields stable profits is MA crossovers — a shabby outcome

Instead of judging by filters,

you must create a setup that reads market information and makes judgments

Otherwise it cannot be a genuine filter

Although Dow Theory is said to be the final form of technicals,

Dow Theory is, in a sense, occult

When we say occult, it includes support/resistance and trend lines

All of these relate to price and time movements on the main chart

And that market judgment functions as the most effective filter

That Dow Theory is the final form of technical analysis means

It implies that price and time themselves are the ultimate form of technicals

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