Bank Nifty & Dow Theory

From today's Bank nifty movement, I can explain Dow theory's 2 tenets.
1. The market discounts everything.i.e The market reflects all available information. Price shows the market participants mindset.
2. Indices must confirm each other. i.e In order for a trend to be established, major indices( Nifty and Bank Nifty )must confirm each other.
Friday Bank nifty has formed bullish flagpole. A flag is a small rectangle pattern that slopes against the previous trend or a rectangle (This is the example of first tenet as it indicated bank nifty is bullish ). Today it broke the flagpole and it is in the process of forming another bullish flagpole. In that case it will retrace a little. Even though Nifty has shown bearish signal on friday,
it didnt give good movement today as bank nifty is bullish (This is the example of second tenet).
Unless Nifty and Bank Nifty move together strong trend wont form.
Comment: Bank nifty should break the rectangle to join bears.
Comment: Bank Nifty is showing the sign of weakness.
Trade active: Short Bank nifty at 19090 with stoploss of today's high 19166 on 1/19/17
Comment: I see what I want in chart. Descending triangle forming in bank nifty.
Comment: Bank Nifty has broken the descending triangle in opening itself.
Comment: 1/22/17 Weekly forecast for bank nifty - resistance 18890(spot)
Supports are 18780, 18740,18670, 18550(spot). One should close their short position before expiry as prebudget rally is expected.
Trade closed manually: Bank nifty took support at 18740. Closed the trade at 18780. Human error in this post is stoploss. From 19090 to 18780 gained 310 points.
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What about Nifty? Shall we take 8425 as your today(below) level instead of 8375?
vanathi murasolivm
@murasolivm, Yes with the stoploss of 8462
nice,idea,thank you,your ideanot simple it is extra ordinary,i never find any post which tried practical application of dow theory with technical charts,again thank you
vanathi dr_professor_nifty
@dr_professor_nifty, Your words encouraged me to write about it. Will write more :)
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