Search Investopedia

Dow Theory

Filed Under » , ,
Dictionary Says

Definition of 'Dow Theory'

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 Says

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.

Video Definition

Related Definitions

  •

    Dogs Of The Dow

    An investing strategy that consists of buying the 10 DJIA stocks with the highest dividend yield at the beginning of the year. The portfolio should be adjusted at the beginning of each ...
    Read More »

  • Dow Jones CDX Indexes

    A series of indices that track North American and emerging market credit derivative indexes. The purpose of the combined indexes is to track the performance of the various segments of ...
    Read More »

  • Dow Jones Industrial Average - DJIA

    The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in ...
    Read More »

    • Nasdaq

      A computerized system that facilitates trading and provides price quotations on more than 5,000 of the more actively traded over the counter stocks. Created in 1971, the Nasdaq was the ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions