Dow theory

English

Etymology

The theory was derived from Charles H. Dow's editorials in The Wall Street Journal.

Proper noun

the Dow theory

1. (finance) A theory of stock price movement, according to which the market has three types of movement, market trends have three phases, prices reflect information published in the news, market averages must confirm each other, trends are confirmed by volume, and trends exist until definitive signals prove that they have ended.