| | InvestHub.com's
Finance Dictionary and Glossary of Investment Terms
Dow Theory
Definition 1.
Used in the context of general equities. 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.
|
Definition 2.
A theory which says the market is in an upward trend if one of its averages (industrial or transportation) advances above a previous important high, it is accompanied or followed by a similar advance in the other.
|
|
|