Dow Theory

A theory of market behaviour formulated in a series of editorials in the Wall Street Journal by its founder and first editor Charles Dow (1851-1920. His ideas made a major contribution to the theories on which technical analysis is based. He co-founded Dow Jones and Company and compiled the Dow Jones Industrial Index (DJIA) and the Dow Jones Rail Index, now the Dow Jones Transportation Average, the oldest stock index still in use.