The Dow Theory

question 41

Multiple Choice

The Dow theory:

• A) proposes that the market is bullish only when the secondary trends are bearish.
• B) advocates that the market rarely deviates from its primary trend for more than 2 weeks.
• C) states that daily market movements are key to changes in the overall market trend.
• D) supports the idea that primary trends are eliminated by corrections.
• E) is primarily designed to identify changes in the primary market direction.

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Definitions:

Pictorial View

A drawing or illustration that represents an object in three dimensions, providing a realistic view as seen from a particular angle.

Bird's Eye View

A view from above, typically at a high vantage point, giving a comprehensive overview of an area or layout.

Cavalier Oblique

A method of drawing in which an object is represented with its depth drawn at full scale, but the height and width are proportionally scaled, creating a distorted but useful perspective.

True Length

The actual length of a line or object, as opposed to its apparent length when viewed from an angle or through a projection.