Dow Theory - The Cornerstone of Market Analysis

Author: Chen Dong (Compiler)
Publisher:
Publish Date: 2004-08-01
Features: The main structure of this book consists of two parts: the Upper Part – Theory, and the Lower Part – Practical Application. The Upper Part primarily introduces the origin and basic ideas of Dow Theory, deriving from which are the three major assumptions of technical analysis, as well as the fundamental principles and basic theorems summarized by for Dow Theory, enabling readers to gain a basic understanding of it. The Lower Part mainly presents the fundamental methods of analyzing the market based on the basic principles and theorems of Dow Theory, allowing investors to use these methods to make clear judgments about market trends. Dow Theory is a long-standing stock market analysis theory on Wall Street, with over 100 years of history. To date, no theory has stood the test of time as well as Dow Theory. If you analyze market trends solely based on Dow Theory, you will likely outperform the majority of "experts" on Wall Street. Investors who use Dow Theory's confirmation days as buy/sell signals and account for its errors can almost guarantee a long-term return rate of 14%. However, Dow Theory has existed for over a century, so outdated methods should not be blindly followed; innovation is necessary.