Introduction of Dow Theory

Introduction of Dow Theory Dow Theory is more than 100 years old, Dow theory remains the foundation of much of what we know today as technical analysis. Dow theory was formulated from a series of Wall Street Journal editorials authored by Charles… Read More

The Market Discounts Everything

The Market Discounts Everything The first basic premise of Dow theory suggests that all information – past, current and even future – is discounted into the markets and reflected in the prices of stocks and indexes. That information includes everything… Read More

The Three-Trend Market

The Three-Trend Market An important part of Dow theory is distinguishing the overall direction of the market. To do this, the theory uses trend analysis. Before we can get into the specifics of Dow theory trend analysis, we need to… Read More

Dow Theory

Dow Theory: Trend Remains In Effect Until Clear Reversal Occurs Dow Theory  The reason for identifying a trend is to determine the overall direction of the market so that trades can be made with the trends and not against them.… Read More