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.

Question

Quizplus · Accepted Answer

The Dow Theory states that the market's performance can be described by long-term price trends, focusing on the primary trend rather than secondary trends or confirming actions.