Introduction to Dow Theory
The Dow Theory is a fundamental concept in technical analysis of financial markets. It was developed by Charles H. Dow, a co-founder of Dow Jones and Company, and the first editor of The Wall Street Journal. Despite being over a century old, Dow Theory remains a cornerstone of trading theory and is still applicable to modern markets.
Understanding Dow Theory
Dow Theory is based on the analysis of market trends and price movements. It is founded on six basic principles: the market has three types of movements,
