Dow Theory
The Averages Discount Everything
Have you ever heard of the expression “news travels fast”?
The Market has Three Trends
We’re usually familiar with ‘trends’ in the world of fashion or social media...
Primary Trends Have Three Phases
According to Charles Dow, the primary trends that we discussed...
The Averages Must Confirm Each Other
We’ve already seen in the first principle that Charles Dow believed...
Volume Must Confirm the Trend
Simply put, volume should increase in the direction of the trend and decrease during a correction...
A Trend is Presumed to be in Effect until There’s a Definite Reversal Signal
The sixth principle of the Dow Theory involves Newton’s first law of motion...
Dow's Ideas Adaptations
It’s been almost 150 years since Charles Dow’s WSJ articles were printed...