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Dow Theory
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Dow Theory is a simple theory of stockmarket performance in the U.S. markets - based on the behaviour of the New York Stock Exchange's Dow Jones Industrial Average - its main index - and one of the subsidiary indices, the Transportation Average.
The theory claims that the market is on an uptrend if one of these two indices advances past a previous high and is followed by the other and vice versa.
Effectively, Dow Theory watchers are looking for the two indices to give confirmation to each other - one moving on its own not being sufficient to confirm a trend either up or down.
Share prices from Wall Street can be found in Stockmarket
See Also: Online share dealing service Stockmarket Centre
Last Updated: June 2007 © Moneyextra.com
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