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.

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

Investment dictionary. . 2012.

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  • Dow theory — on stock price movement is a form of technical analysis that includes some aspects of sector rotation. The theory was derived from 255 Wall Street Journal editorials written by Charles H. Dow (1851–1902), journalist, founder and first editor of… …   Wikipedia

  • Dow Theory — is a heterodox theory on stock price movements that is used as the basis for technical analysis. The theory was derived from 255 Wall Street Journal editorials written by Charles H. Dow (1851 ndash;1902), journalist, founder and first editor of… …   Wikipedia

  • Dow Theory — Used in the context of general equities. Technical theory that a major trend in the stock market must be confirmed by simultaneous movement of the Dow Jones Industrial Average and the Dow Jones Transportation Average to new highs or lows.… …   Financial and business terms

  • dow theory — ˈdau̇ noun also dow s theory ˈdau̇z Usage: usually capitalized D Etymology: after Charles H. Dow died 1902 more at dow jones average : a system of stock market forecasting based on the observed swings of the market itself * * * Dow theory, U.S …   Useful english dictionary

  • Dow Theory — Fin the theory that stock market prices can be forecast on the basis of the movements of selected industrial and transportation stocks …   The ultimate business dictionary

  • Dow Jones Transportation Average — Stammdaten Staat Vereinigte Staaten Börse New York Stock Exchange ISIN XC0009694214 …   Deutsch Wikipedia

  • Dow Jones Transportation Average — The Dow Jones Transportation Average (DJTA, also called the Dow Jones Transports ) is a U.S. stock market index from Dow Jones Indexes of the transportation sector, and is the most widely recognized gauge of the American transportation sector. It …   Wikipedia

  • Dow, Charles Henry — ▪ American journalist born Nov. 6, 1851, Sterling, Conn., U.S. died Dec. 4, 1902, Brooklyn, N.Y.  American journalist who cofounded Dow Jones & Company, a financial news service, and The Wall Street Journal. His original contributions include the …   Universalium

  • dow's theory — noun see dow theory …   Useful english dictionary

  • Dow 36,000 — Dow 36,000: The New Strategy for Profiting From the Coming Rise in the Stock Market is a book by James K. Glassman and Kevin A. Hassett. It was published in 1999, shortly before the dot com bubble burst, and predicted that the Dow Jones… …   Wikipedia

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