The fifth principle of Dow Theory
"The trend continues unless clear signals of a reversal appear."
Meaning:
If the trend is upward, it will continue to rise, and if it is downward, it will continue to fall until signals prove otherwise.
And we do not assume a trend reversal on our own.
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How do we know that the trend is still continuing?
In an upward trend, the volume during the rise is stronger than the volume during corrections.
