The Dow Theory is a set of definitions and rules relating to the behavior of prices of financial instruments by Charles Dow on which is based the modern technical analysis. Charles Dow was an American journalist who, in the early twentieth century, wrote a series of articles in the Wall Street Journal a series of observations on the behavior of financial markets, analyzed through the use of graphics. It must therefore be to him and to his theory of the creation and dissemination of technical analysis, as well as the development of the first stock indexes, including the Dow Jones. Charles Dow developed the theory based on his analysis on the movement of market prices of the nineteenth century; the theory represents the ancestor of the best known principles of modern Technical Analysis, given that the Dow Theory is not just a compendium of technical analysis and price action, but also refers to the philosophy of the market itself. Even though most of the theory was developed by Dow starting from medium and Industrial Rail as basic concept, the fundamental assumptions can be applied to individual stocks, to commodities and indices. The theory was presented in a single text by Robert Rhea, qThe Dow Theoryq and although it is attributed to Charles Dow, the writings of Hamilton should be considered as milestones, as well as the text of the same Rhea.The theory was presented in a single text by Robert Rhea, aquot;The Dow Theoryaquot; and although it is attributed to Charles Dow, the writings of Hamilton should be considered as milestones, as well as the text of the same Rhea.
|Title||:||The Dow Theory - Lesson II|
|Publisher||:||Edizioni R.E.I. - 2015-03-15|