What Is the Primary Purpose of Dow Theory

question 75

Multiple Choice

What is the primary purpose of Dow theory?

• A)to measure the level of investor optimism and pessimism
• B)to analyze daily market movements
• C)to identify and measure market waves
• D)to eliminate market corrections
• E)to signal changes in the market's primary direction

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Definitions:

Consistent

Showing steady and uniform characteristics or behavior over a period of time, lacking any significant variation.

Reliable

The extent to which an assessment tool produces consistent and stable results over multiple applications or time periods.

Standardized

The process of making something conform to a standard in order to ensure consistency and comparability.

Norms

Shared expectations or rules within a society or group about how members should behave.