purports that the market is in a basic upward trend if one of its averages (industrial or transportation) advances above a previous important high, accompanied or followed by a similar advance in the other. When both averages dip below previous important lows, it's regarded as confirmation of a basic downward trend.

Observations on the nature of trend by Charles Dow in the early 20th century. It also notes that broad market trends verify when the 3 major market averages all move to a new high or low

One of the oldest technical theories. Its main components include, the average discount everything, the market is comprised of the trend, primary trend had three phases and the averages must confirm one another.

Charles Dow, the great editor who created the Dow Jones index, believed that a new bull market was signalled when the index made a pattern of successive higher highs and lows. In order to be really convincing, this needed to be confirmed by the Dow Jones transportation index. He believed that one of the first signs of an improving economy was more goods being moved around.

A theory of market analysis originated by Charles Dow in 1897 which holds that market prices can be categorized into trends that he described as similar to waves. Each wave has its own distinctive characteristic. By identifying those characteristics, you can identify the direction of market prices.

Charles Dow formed the foundations of technical analysis around 1900.The Dow theory comprises six assumptions: 1. The averages discount everything 2. The market is comprised of three trends (Primary, Secondary, Minor) 3. Primary trends have three phases 4. The averages must confirm each other 5. The volume must confirm the trend 6. A trend remains intact until it gives a definite reversal signal.

Market theory whereby a major stock market trend must be corroborated by a similar movement in the Dow Jones Industrial Average and the Dow Jones Transportation Average. A trend is confirmed only when both Dow Jones indexes obtain new highs or lows. If they do not, the market will return to its previous trading range. Believers of the Dow Theory frequently disagree on when a true trend is taking place. See: Dow Jones Industrial Average; Dow Jones Transportation Average

Technical theory that a major trend in the stock market must be confirmed by simultaneous movement of the Dow Jones Industrial Average and the Dow Jones Transportation Average to new highs or lows.

An investment theory that uses the Dow Jones Industrials and Transports to confirm bull and bear markets.

One of the first ideas that formed the beginnings of technical analysis, the Dow Theory holds that all major trends can be sub-divided into three phases: entrance, whereby savvy market participants enter the market; acceleration, whereby a slew of additional participants see the trend and enter the market, thereby accelerating the trend; and consolidation, a period characterized by the initial participants exiting their trade.

Theory stating major stock market trends must be confirmed by simultaneous movement of DJIA and DJT Averages.

Theory of market movement developed by Charles Dow that prices move in defined trends of successive higher peaks and higher troughs in an uptrend, and lower peaks and lower troughs in a downtrend. Dow divides trends into primary, secondary and minor. Volume patterns are associated with specific points in a trend. Dow theory is the foundation of most modern technical theory.

A theory of market analysis based upon the performance of the Dow Jones industrial and transportation stock price averages. The theory says that the market is in a basic upward trend if one of these averages advances above a previous important high, accompanied or followed by a similar advance in the other. When the averages both dip below previous important lows, this is regarded as confirmation of a downward trend. The Dow Jones is one type of market index. (See: NYSE Composite Index)

A theory predicated on the belief that the rise or fall of stock prices is both a mirror and a forecaster of business activities.

Dow theory maintains that a major market trend up or down will continue only if both the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average move simultaneously in the same direction until they both hit a new high or a new low. Some experts discount the relevance this approach as a useful guideline, arguing that waiting to invest until a trend is confirmed can mean losing out on potential growth.

A theory which is based on the belief that the fluctuations in the stock market are both a reflection of current business trends as well as a predictor of future business trends.

A belief that major trends in the stock market are confirmed by more than one index. Only if a new high or low is recorded in two or more indexes can it be safely said that the market is headed in a certain direction.

Technical Analysis was a theory developed by Charles Dow, the first true editor of The Wall Street Journal and developer of the Dow Jones Industrial Index. His work was continued well into the future by other famous analysts such as William Hamilton and Robert Rhea.

Dow Theory is a theory on stock price movements that provides a basis for technical analysis. The theory was derived from 255 Wall Street Journal editorials written by Charles H. Dow (1851–1902), journalist, first editor of the Wall Street Journal and co-founder of Dow Jones and Company.