The Dow Theory

question 58

Multiple Choice

The Dow Theory

• A) is used to predict long- term trends in the market based on confirming actions by the transportation average.
• B) concentrates on the secondary trends in both the industrial and the transportation averages.
• C) states that the market's performance can be described by long- term price trends.
• D) contends that the long- term trend of the market remains constant until the industrial average confirms a shift in direction as first seen in the transportation average.

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Definitions:

Ergot

A fungal disease of cereal crops and grasses, producing toxic alkaloids, historically associated with outbreaks of ergotism in humans.

Truffles

A type of highly valued fungus that grows underground, often near the roots of certain trees, prized for their distinctive flavor in culinary uses.

Algal Contribution

The impact or role of algae in ecosystems, particularly regarding oxygen production through photosynthesis and as a foundational element of food chains.

Fungal Component

A part or element of a system that is derived from fungi or consists of fungal organisms.