Research method
Dow Theory
Dow Theory is a canonical archive-taxonomy method; this registry entry defines its inputs, output and use boundary.
- Output
- Signal
- Input
- OHLC price structure and chart scale
- Horizon
- From intraday to several weeks
- Best use
- Turn a repeatable chart condition into a falsifiable trade hypothesis.
- Input: OHLC price structure and chart scale.
- Output: signal.
- Use boundary: Turn a repeatable chart condition into a falsifiable trade hypothesis.
The graph3
How the method is built, and where it has been read
Depends on
Often reviewed together
Trend following4 readings
Often reviewed together
Head and shoulders4 readings
Often reviewed together
Price-indicator divergence8 readings
Read in the archive24 of 29 readings
1982A bounded-risk entry separates a forecast from a trend1984Critiquing reward bias, single-scale charts, and exact-turn forecasts1990Constructing dual-average primary-trend confirmation1991Two-average confirmation before a primary reversal call1991Delayed confirmation is not Dow Theory divergence1991Confirmation delay and breadth divergence in a two-average case1992Critiquing unconfirmed Dow rallies with volume1992Utilities as a rate-regime lead for equities1993When Dow Theory signals fail after the decision-makers change1994Market life expectancy as a risk filter1994Score industrial and transport sync before calling an intermediate-trend signal1997A 1995 industrial-average breakout mapped from component trends1998Confirm Dow trends with Market breadth and Head and shoulders1999Confirming an equity idea with rate, commodity, and index spreads2001Why trend, range, and Dow rules need separate tests2001Bear-market confirmation via prior correction troughs2002Constructing a Dow line before breakout confirmation2002Two-average confirmation as a swing-by-swing classroom drill2002Withhold the hypothesis until the second average confirms: a 2001 case2002A primary-bear case study in cycle speed, Dow theory, and pattern legs2003Four index proxies as a bear-regime dashboard2004Dual-average confirmation at shared prior highs2004Confirmation as the second clock on a trend break2004The confirmation-reaction planning window after a joint break
This registry entry describes a research method. It is not investment advice and does not make a performance claim.