Definitions

Dow Theory

Posted By: TradersLog

An technical theory developed by Charles Dow which suggests that the market is in an upward trend if either the Dow Industrial or Dow Transportation average advances and closes above a previous important high and is accompanied by a similar advance in the other. A Dow Theory buy signal is given when both averages close above a prior rally peak, and a sell signal is given when both averages close below prior significant low.

Related websites: Dow Jones Indexes, Dow Theory Letters

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Categories Definitions, Technical Analysis Definitions | Tags: Charles Dow, Technical Analysis

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