Definitions for "Dow Theory"
Keywords:  charles, jones, trend, theory, confirm
A technical approach based on the idea that the market's performance can be described by the long-term price trend in the Dow Jones Industrial Average, as confirmed by the Dow transportation average.
A description of market behavior, invented by Charles Dow, which divided price moves into three types of trends: major (lasting from months to years), intermediate (weeks to months) and minor (days to weeks). A primary corollary is that of mutual confirmation of moves by both the Industrial Average and the Transportation Average, i.e. a significant move by one average must be confirmed by a similar move in the other. This action provides the theory with the signals.
Originated by Charles Dow, describes the action of price trends. Dow Theory is used by technical analysts to chart the direction of market prices.
Keywords:  option
Down and in option Down and out option