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THE  DOW  THEORY MORE THAN 100 YEARS OF PRACTICAL GUIDANCE TO STOCK INVESTORS A Simplified explanation of the Dow Theory b...
More than 100 years of practical guidance to stock investors  THE DOW THEORY  A simplified explanation of the Dow Theory b...
FOREWORD While most investors have heard of the Dow Theory, few have more than a nodding acquaintance with it. It is a met...
INTRODUCTION TO THE DOW THEORY More than a century of Dow Theory history establishes the validity of these claims  1. If y...
BEGINNING OF THE DOW THEORY The continuous auction of stocks is conducted every business day on the floor of the New York ...
THE TOOLS OF THE DOW THEORY Discovery that the stock market as a whole had an underlying trend, distinct from the daily fl...
prices of the averages    stocks to find the official average. The divisor is the result of a succession of substitutions,...
DOW THEORY WORKBENCH The Dow Theory uses two tools  1. Daily closing Dow Jones Transportation Average. 2. Daily closing Do...
PRACTICE CHART Daily fluctuations for five months, beginning June 2013  DOW INDUSTRIALS 16,000 15,600 15,200 14,800  Jun  ...
THE THREE MOVEMENTS We have seen that the market as a whole has a trend and that this trend is conveniently measured in te...
DAILY FLUCTUATIONS The smallest unit of time considered in the Theory is one day. Only the closing averages are used in th...
tide of the sea. The old salts who loiter around this beach are full only of information about the ripples and the spray, ...
THE AVERAGES SPEAK These preparations we make to chart the movement of the averages enable us to read what these averages ...
DOW THEORY CONFIRMATION We now come to a fundamental tenet of the Dow Theory  for any signal to be authentic, it must be a...
BULL MARKET It is all very well to say that the Dow Theory is no more than a method of applying common sense to the stock ...
A typical bull market, for clarity reduced to a single line, would look something like the chart below  E D      R R      ...
and friends to sing the blues in alarming fashion. They will expect to learn of omitted dividends and of important compani...
adjust and readjust themselves to improving business and increased earnings. At this time investors can put a knowledge of...
REVERSALS    Secondary reaction    is the time-honored Dow Theory expression for an important decline in a primary bull ma...
 or advance , which looks only like a reversal, must be only a reversal and not a turn of the tide. Distinguishing a rever...
PENDULUM SWINGS Dow theorists should understand a principle sometimes called    Dow   s Law of Action and Reaction.    A p...
BEAR MARKET FIRST PHASE As in bull markets, Dow theorists will often recognize three phases in a bear market. We may defin...
the collapse of prices to a point that seems unbelievable. During this period, people who have seen their regular sources ...
TIME ELEMENTS IN PRIMARY TRENDS Perhaps the hardest thing for the new Dow theorist will be the exercise of patience. Let h...
Bull market which began in 1953 lasted approximately 31 months.           1957     21             1960     15             ...
Bear market which began in                                                                                      1973 1976 ...
SIGNAL PRACTICE If you now have a clear conception of the averages and Dow Theory tidal action, you hold the key to succes...
A A  Ind.  B B  Tran.  A and B are new highs for Industrials and Transports  confirming each other  in a bull market. The ...
Ind. Tran.  More successive new highs by one average which the other average fails to confirm. The averages say     Well, ...
Ind.  A  Tran.  B A B  C C  Sharp upturn B to C after protracted down slide, more rapid than primary movement. Shorter dur...
CONCLUSION Few investors are wholehearted, practicing Dow theorists  few investors base their transactions on the story of...
NEWSLETTERS Dow Theory Forecasts  www.DowTheory.com Stock market trends and securities reports since 1946.  Upside  www.Up...