I read about Dow Theory years ago and with all the new highs and lows setting in across the markets I trade, I seem to be thinking about quite often these days.

There are six major principles of Dow Theory and my own trading has been inspired and guided by four of the rules.

ONE:  The market has three movements.

TWO:  Trends have three phases

THREE:  The markets discounts all news

FOUR:  Trends exist until definitive signals prove that they have ended

I am going to discuss these four principles in detail at the upcoming Chart Pattern Trading webinar here at FXStreet this coming Tuesday.

If you use chart patterns and price action to decide on your trades, this is a presentation you need to watch.

- Raghee