Tertiary means that the Dow set for this trend a time frame of one to three weeks. Fluctuations or variations are within the secondary trend. It is widely used in the intraday or daily trading.
Dow also provides an analogy between markets and the movement of marine waters, noting the ebb and flow of the ocean as both markets. As primary movement of the water indicates the tides, waves and secondary tertiary and movement of small ripples that form the waves. For Dow tertiary movements should not have more attention because it does not reflect the actual market movement. It’s all about primary and secondary trends (in the simile tides and waves), so you know when to buy and sell. If the crests of the waves are getting higher, we will be in the presence of a primary movement, ie the tide is rising and if they are ever lower peaks is that the primary movement is downward, the tide is ebbing. Just as obviously happen to prices in markets Forex currency as in stock and losmercados Nevertheless suggests great caution, because the markets are sometimes capricious and respond to unprecedented and unpredictable variables. A single story can impact so that markets can literally go crazy and mad at their participants. In the metaphor used by Dow comparison is very valid, yet we know that the tides rise and fall in a cycle of 24 hours, while the upward or downward movement of the markets can last months or even years. An example of this is in an ounce of gold that have more than a decade of steadily rising and nobody knows when it will stop this movement more in my next installment Edmar Vieira.