Dow Theory

What Does Dow Theory Mean?
A theory which says the market is in an upward trend if one of its averages (industrial or transportation) advances above a previous important high, it is accompanied or followed by a similar advance in the other.

Investopedia explains Dow Theory
The theory also says that when both averages dip below previous important lows, it's regarded as an indicator of a downward trend.

Related Terms

Dogs of the Dow
Dow Jones CDX Indexes
Dow Jones Industrial Average - DJIA
Nasdaq
More Related Terms

Related Links

Dow Theory - Learn about the foundation upon which technical analysis is based.
Giants of Finance: Charles Dow - Find out how this financial visionary helped everyday people enter the world of finance.
Barking Up The Dogs Of The Dow Tree - Are these investments show dogs or just mangy mutts?
A Trip Through Index History - Find out how the first market averages were calculated and what they mean for investors today.
Four-Week Rule Boosts Winning Trades - Acquaint yourself with an indicator that played a role in the early development of technical analysis.
What are the "Dogs of the Dow"?

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