Dow Theory: Understanding the Foundation of Market Analysis

The Dow Theory: Principles and Concepts

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The Dow Theory postulates that there are

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A. B. C. D. E.

E

The Dow Theory was invented in the late 19th century by Charles Dow, publisher of the Wall Street Journal. It postulated that there were three types of price movements over time: major trends, intermediate trends, and short-term movements. These three types of trends interacted with one another, and identifying and isolating them individually would lead to profit opportunities.