💡 Why study classic trading theories?
🎯 Build a complete investment framework
Theories shape a holistic market view and improve strategic decision-making.
📈 Improve forecasting accuracy
Strong theoretical foundation helps navigate uncertainty and capture major trends.
⚡ Efficient strategy execution
Mastering principles enables confident entries/exits and systematized operations.
🛡️ Better risk control
Theory guides practice, avoiding blind trades and keeping you proactive.
📚 12 classic trading theories explained
1️⃣ Dow Theory
Core ideas
- • Market discounts everything
- • Prices evolve in trends
- • History repeats itself
- • Volume confirms trends
Practical use
- • Identify primary, secondary, and minor trends
- • Apply dual-confirmation principles
- • Trade trendline breakouts
- • Watch for price–volume divergences
2️⃣ Elliott Wave Theory
Core ideas
- • Markets move in 5–3 wave structures
- • Impulse waves (1,3,5) and corrective waves (2,4)
- • Fractality—large waves contain small waves
- • Golden ratio applications
Practical use
- • Identify current wave position
- • Wave 3 often strongest
- • Buy opportunities in Wave 4 corrections
- • Exit signals after Wave 5 completion
3️⃣ Gann Cycle Theory
Core ideas
- • Time is the most crucial factor
- • Price–time balance
- • Natural laws in markets
- • Geometric angle lines
Practical use
- • Angle line support/resistance
- • Cycle turning point forecasting
- • Square of price and time relations
- • Fan lines for trend judgment