3
DOW THEORY
Questions
Subjects to Be Covered
The concept
The tenets of the theory
Who developed the Dow theory
How turning points are recognized
The theory’s limitations
1. Which of the following statements are correct?
A. Dow theory is not concerned with the direction of a move, only its duration.
B. Dow theory is not concerned with the duration of a move, only its direction.
C. Dow theory is concerned with both the direction and duration of a move.
D. None of the above
2. Which of these statements is incorrect?
A. Dow was concerned with forecasting stock prices.
B. Dow developed and called the Dow theory after himself.
C. Dow was concerned with forecasting business conditions through the use of stock prices.
D. A and B
3. What is the signal ...
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