Previous Bull Market Highs
Breaking above prior bull-market highs is bullish but is not equivalent to a Dow Theory buy signal. Dow Theory trend followers need evidence of a new trend, but Dow Theory does not require a break above the prior bull market's highest high…
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Breaking above prior bull-market highs is bullish but is not equivalent to a Dow Theory buy signal. Dow Theory trend followers need evidence of a new trend, but Dow Theory does not require a break above the prior bull market's highest highs. The article rejects the belief that a new bull market buy signal requires both averages to exceed the highs of the previous primary bull market. Waiting for previous bull-market highs before buying usually causes an overly late entry.