Ask Colin

Which indicators are best to define when we are in a bear market?

Bull and bear markets are not defined by indicators. They are defined by the peaks and troughs formed on the charts of major market indicators as set out in Dow Theory. Dow Theory is dealt with in:

  • E114 Technical Analysis,
  • The Technical Analysis articles I have published in the ATAA Journal and on my subscription web site,
  • Articles I have written in Shares magazine and which are archived on the Shares website or my subscription web site
  • Robert Rhea's original text The Dow Theory.

Indicators are useful for smoothing price action, but are essentially derivatives of the index value.