The Dow Theory Describes Stock Prices as Moving in Trends

question 157

Multiple Choice

The Dow Theory describes stock prices as moving in trends analogous to the movement of water. Which of the following statements is NOT true?

• A) Major trends resemble tides.
• B) Intermediate trends resemble waves.
• C) Short-run movements are like ripples.
• D) Waves are the most important.
• E) There are three types of price movement over time.

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Definitions:

Oedipus Complex

A Freudian concept in psychoanalytic theory that describes a child's feelings of desire for their opposite-sex parent and jealousy and rivalry with their same-sex parent.

Sexual Attachment

A form of emotional bonding or connection between individuals that incorporates sexual intimacy or attraction.

Jealousy

A complex emotion that often involves feelings of insecurity, fear, concern, and envy over relative lack of possessions, status or something of great personal value.

Oedipus Complex

A psychoanalytic theory from Freud that describes a child's feelings of desire for the opposite-sex parent and jealousy and rivalry with the same-sex parent.