Swing nature of price action
While both Dow Theory and Elliott Wave Theory involve the concept of swings, they approach them in different ways, and the terminology and principles used in each theory may differ. Let's explore how swings are defined in Dow Theory and Elliott Wave Theory: Dow Theory Swings: In Dow Theory, the concept of swings is related to the primary, secondary, and minor trends. The primary trend is the long-term direction of the market, while secondary and minor trends represent shorter-term fluctuations within the primary trend. Primary Swings: These are the major movements in the primary trend. In an uptrend, primary swings consist of higher highs and higher lows, while in a downtrend, they consist of lower highs and lower lows. Secondary Swings: These are corrections or counter-trend movements within the primary trend. In an uptrend, secondary swings are declines (lower highs and lower lows), and in a downtrend, they are rallies (higher highs and higher lows). Minor Swings: These are s