There may be temporary corrections to a trend, but soon the trend will resume. Traders should look for clear trend reversal signals and not confuse a primary trend reversal with a secondary trend. Current Relevance The Dow Theory established the basic principles of technical analysis. However, with the advent of more advanced techniques and tools, the Dow Theory needs expansion. One of the big problems with this theory is the conservative nature of a trend reversal signal. A reversal of bullish and bearish trends is confirmed when there is an end to successive highs and lows respectively. However, it is difficult to predict the end of trends and by the time it is confirmed, the markets have already come a long way. However, the Dow Theory will always remain important in technical analysis. This was the first step in technical analysis of stocks and even after 110 years, its tenants remain very relevant. From time to time, one can find the Dow Theory at work in market movements. It was, is and always will be the first chapter of technical history.