Dow Theory: An Introduction

The Dow Theory is one of the oldest and most fundamental theories of technical analysis, introduced by Charles Dow, who is considered the father of technical analysis. The Dow Theory was first proposed in his late 19th century and has been used by traders and investors for over a century. The main purpose of Dow Theory is to provide guidance to traders on how to interpret market trends and predict future market movements. This e-book explains the basic principles of the Dow Theory and how they can be applied to modern trading.

Charles Dow was a financial journalist who co-founded Dow Jones & Company and edited the Dow Jones Industrial Average. Dow's interest in the stock market led him to monitor the movements of individual stocks and the wider market as a whole. He said stocks move along trends and these trends can be predicted using certain market indicators. These observations formed the basis of the Dow Theory.

The author Sankar Srinivasan, is Certified market professional of national stock exchange of India. He has more than 15 years experience in share trading and technical analysis.