It’s been almost 150 years since Charles Dow’s WSJ articles were printed. The ideas that Dow proposed have undergone many developments and adaptations since then.

This is because many aspects of the theories are no longer valid. For example, railroads are not the apex of business today and would not be a correct reflection of the markets as a whole.

However, Dow’s theories are the basis of technical analysis. From primary trends and phases to index movements to volume – all of these can be found in technical analysis tools and strategies today.

And although Charles Dow never published his complete works in one book or called it the ‘Dow Theory’, he is still considered the father of technical analysis by many because a significant amount of successive works were based on his original ideas.

Last but not least, the Dow Jones Industrial Average continues to exist and is considered one of the most important averages. But of course, the companies that are in it have changed to reflect today’s ever-developing world.

And with that, we’ll wrap up the Dow Theory.
See you next time!