The Dow Theory

Dow Theory Introduction The Dow supposition has been around for almost 100 years, yet even up in todays volatile and technology-driven markets, the basic components of Dow theory close up remain valid. Developed by Charles Dow, refined by William Hamilton and articulate by Robert Rhea, the Dow theory addresses not only technical summary and price effect, but also market philosophy. Many of the ideas and comments bewilder forth by Dow and Hamilton became axioms of fence in Street. While there be those who may think that it is different this time, a read with The Dow Theory will attest that the stock market behaves the same today as it did almost 100 years ago. The Dow theory presented below has been taken from Robert Rheas book, The Dow Theory. Although Dow theory is attributed to Charles Dow, it is William Hamiltons writings that give ear as the corner stone for this book and the development of the theory. Also, it should be noted that most of the theory was developed with the Dow Jones Rail and industrial averages in opinion. Even though many concepts can be applied to individual stocks, please keep in mind that these are broad concepts and best applied to stocks as a group or index.

When possible, we have also attempted to splice some of the realities of todays market with the Dow theory as explained by Dow, Hamilton and Rhea. Background Charles Dow developed the Dow theory from his analysis of market price action in the late 19th century. Until his death in 1902, Dow was position owner as well as editor of The Wall Street Journal. Although he never wrote a book on the subject, he did write some editorials that reflected his views on speculation and the graphic symbol of the rail and industrial averages. Even though Charles Dow is credited with ontogenesis the Dow theory, it was S.A. Nelson and William Hamilton who later refined the theory into what it is today. Nelson wrote The ABC of Stock scheme and was the first to actually use the term Dow theory. Hamilton further... If you want to deal a full essay, order it on our website: Orderessay

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