Chapter 3 Flashcards
1
Q
Explain Dow Theory
A
Dow Theory is concerned with the direction of the trend only.
- Not Duration or Size
2
Q
Which two indexes are used to measure the market?
A
- Dow Joned Industrial Average
- Transportation Average
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.
4
Q
A