Chapter 3 Flashcards

1
Q

Explain Dow Theory

A

Dow Theory is concerned with the direction of the trend only.

  • Not Duration or Size
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Which two indexes are used to measure the market?

A
  • Dow Joned Industrial Average
  • Transportation Average
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Explain “The Averages Discount Everything”

A

Changes in the daily closing prices of the Dow Jones Industrial Average Index reflect the total judgement and emotions of all stock market participants, both current and potential.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly