What theory recognizes three movements in security markets: major trends, intermediate trends, and short-term trends?

Question

Quizplus · Accepted Answer

Dow Theory recognizes three movements in security markets: major trends, intermediate trends, and short-term trends. Major trends are broad market movements lasting several years. Intermediate trends, occurring within a major trend, are influenced through current events and resemble waves lasting for several weeks or months. Shot-term trends are daily ripples that have no significance. It is up to the technician to properly calculate the direction of a major trend. The term bull market is used for an upward major trend, and the term bear market is used for a downward major trend. Bull markets exist when upward rallies pass prior highs and declines stat above previous lows.

What Theory Recognizes Three Movements in Security Markets: Major Trends