>>12197117Dow theory doesn't permit prediction of a change in the trend, it only recognizes that a change has occurred in the past. Prediction implies an awareness of time (ie when something is going to happen) rather than observation that something has already happened.
For example. A tenet is that a trend is only over once a positive indication has occurred and the trend has in fact changed. It doesn't try to determine when that change occurs. And it also doesn't know what to expect of the future trend after a change occurs, instead, we watch and see what pattern develops.
>but can you predict marketsYou can make a logical assumption that if a trend is happening it will continue until it doesn't. Lol
This is mostly useful for eliminating certain cognitive biases, such as the assumption that a trend has continued for "too long" and must change soon despite there not actually being any change observed.
