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• Dow theory maintains that major market trends depend on how the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average behave.

  They must move simultaneously in the same direction until they both hit a new high or a new low in order for a trend to continue.

  Some experts discount the relevance of this approach as a useful guideline, arguing that waiting to invest until a trend is confirmed can mean losing out on potential growth.

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  American Psychological Association (APA)

  Dow theory. (n.d.). Yahoo Personal Finance Glossary. Retrieved February 3, 2023, from website: http://www.expertglossary.com/definition/dow-theory.

  Chicago Manual of Style (CMS)

  Dow theory. finance.yahoo.com. Yahoo Personal Finance Glossary. Yahoo Finance. http://www.expertglossary.com/definition/dow-theory (accessed: February 3, 2023).

  Modern Language Association (MLA)

  "Dow theory." Yahoo Personal Finance Glossary. Yahoo Finance. 3 February. 2023 http://www.expertglossary.com/definition/dow-theory.

• Browse Related Terms: Average, Breakout, Dogs of the Dow, Dow Jones 65 Composite Average, Dow Jones Industrial Average (DJIA), Dow Jones Transportation Average, Dow Jones Utility Average, Dow theory, Efficient market theory, Logarithmic scale, NASDAQ Composite Index, New York Stock Exchange Composite Index, Qubes, Value Line Composite Index, volume, Weighted stock index