SECONDARY TREND
19 April 2017 By PDSNETCharles Dow identified three different lengths of movement in the stock market as part of his "Dow Theory". They were long-term trends which vary from 2 to 10 years or even longer, secondary trends which last from 1 to 6 months, and so-called "daily fluctuations" which last from a few minutes to two weeks. Secondary trends are known as "corrections" in a bull trend and "rallies" in a bear trend. It is difficult to take advantage of secondary trends unless your timing is superb and if you do you will certainly be regarded by the Receiver as a "share trader". We suggest that you rather stick to longer-term investments (3 years or more) and hold through the secondary trends.
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