AUDUSD Dow theory analysis

Dow theory teaches main 3 characters:

1. Note the swing high swing low then you can see the Higher High, Higher Low, Lower High and Lower Low points

2. Draw the trendline

3. Carefully looking for changes:

• Bullish into Bearish

 Higher High into Lower High and Higher Low into Lower Low and wait for a trendline breakout.

• Bearish into Bullish 

Lower High into Higher High and Lower Low into Higher Low and wait for a trendline breakout.