Explain dow theory? ( Please explain in simple words and precise)
Answer :- Dow theory is a theory developed by Charles Dow . It says about the Stock price movement. It says about the technical analysis of the sfinancial market . According to Dow theory Stock Market is a reliable source and also it moves in upward trend . It is used by investor to know the health of Business Environment . According to Dow theory market always moves in a trends that are Primary trends , Secondary trends and Minor Trends . Primary trends are the trends of long run while secondary trends are the trends of short run while Minor trends are just a fluctuations in market.
Which of the following statements about the Dow Theory is accurate? A. The goal of the Dow Theory is to identify short, intermediate, and long-term trends. B. The Dow Theory is considered a sentiment-based analysis tool that claims advances in the market are confirmed if accompanied by a similar advance in another of its indices. C. The Dow Theory asserts that only primary trends affect stock prices. D. Critiques claim that the Dow Theory does not identify market turns until...
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