What You Should Know About the Dow Theory

What You Should Know About the Dow Theory

The Dow Theory, created by Charles H. Dow, is a collection of theories that come together to form an idea about how financial markets move over time. While it's most commonly used in technical analysis, long-term investors can use the Dow Theory to help spot buying opportunities and chances to lower their cost basis for particular investments. The Dow Theory has six main parts to it.