Which one of the following indicates the long-run direction of the market according to Dow Theory?

Question

Quizplus · Accepted Answer

According to Dow Theory, the primary trend indicates the long-run direction of the market, which can last for several years. The daily fluctuations, secondary reactions, and tertiary trends are shorter-term movements that can occur within the primary trend. Monthly changes may be influenced by both short-term and long-term factors, but they do not necessarily reflect the overall direction of the market in the long run.

Which One of the Following Indicates the Long-Run Direction of the Market