Dow Theory:Dow Theory defines the rhythm of the market, he who has the eye to see it, and the mind to understand can also learn to play it successfully. Charles Dow(1851-1902) was the father of Technical Analysis and the discoverer of the Dow theory. The theory lays down the guidelines to understand how the market moves. It is the foundation on which the monument of Technical Analysis stands today. Dow Theory is predominantly structured around the concept of trends in the market of study. There are three basic trends in price motions described within the Dow Theory, each defined against time:1. The Primary TrendIt is the broad upward or downward movement in the price, known as the bull or the bear market, lasting for several years. The primary trend represents the overall, broad, and long term movement in the market. In case of an uptrend, it is called the œPrimary bull trend and in case of a downtrend, it is called the œPrimary bear trend. The primary trend is the most refined in terms of stages and can be observed not just in charts but also in the state of economy and business cycles. 2. The Secondary (Intermediate) Trend:It is considered to be the most deceptive of the trends. The intermediate trend is of time duration shorter than the primary trend and unfolds as the reactionary movements within the primary trend. They have a span of a minimum of three weeks and up to several months. This trend is like a rest for the primary trend, it has a similar effect for the primary trend as tugging on a catapult before being released, it corrects or pulls back nearly 33-66% from the last primary movement. 3. The Minor Trend:This is the daily fluctuations, considered unimportant in Dow Theory as it is subject to manipulation and disruption by market noise. It remains erratic and fairly unpredictable. Therefore, according to DOW theory, the market is always considered as having 3 movements, all growing at the same time.