Dow theoryDow theory
Origin of Dow theoryAfterCharles Henry Dow
dow theory - Investment & Finance Definition
The theory that any major stock market trend must occur both in the Dow Jones Industrial Average and the Dow Jones Transportation Average; both indices must reach either new highs or lows, otherwise the market will fall back to its previous trading range. Dow Theory is based on a technical analysis theory pioneered by Charles Dow, one of the founders of The Wall Street Journal and Dow Jones & Co.