Dow Theory

The Dow theory on stock price movement is a form of technical analysis that includes some aspects of sector rotation. The theory was derived from 255 Wall Street Journal editorials written by Charles H. Dow (1851–1902), journalist, founder and first editor of the Wall Street Journal and co-founder of Dow Jones and Company. Following Dow's death, William Peter Hamilton, Robert Rhea and E. George Schaefer organized and collectively represented Dow theory, based on Dow's editorials. Dow himself never used the term Dow theory nor presented it as a trading system.

The six basic tenets of Dow theory as summarized by Hamilton, Rhea, and Schaefer are described below.

Read more about Dow Theory:  Six Basic Tenets of Dow Theory, Analysis

Other articles related to "dow theory":

Dow Theory - Analysis
... that a buy-and-hold strategy produced 15.5% annualized returns from 1902–1929 while the Dow theory strategy produced annualized returns of 12% ... years, many academics stopped studying Dow theory believing Cowles's results were conclusive ... that Cowles' study was incomplete and that Dow theory produces excess risk-adjusted returns ...

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