Chapter 6. Dow Theory

Chapter Objectives

By the end of this chapter, you should know

• A brief history of the development of Dow Theory and the major contributors to this development

• The three Dow Theory hypotheses presented by Rhea

• The theorems of Dow Theory

• The three types of trends—primary, secondary, and minor—of Dow Theory

• The concept of confirmation in Dow Theory

• The role of volume in Dow Theory

• The criticisms of Dow Theory

Charles H. Dow was the founder of the Dow-Jones financial news service in New York, and founder and first editor of the Wall Street Journal. He died in December, 1902, in his fifty-second year. He was an experienced newspaper reporter, with an early training under Samuel Bowles, the great editor of the ...

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