V. 20:7 (91-93): Working Money: How Dow Theory Works by Andrew Hetherington

V. 20:7 (91-93): Working Money: How Dow Theory Works by Andrew Hetherington
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Working Money: How Dow Theory Works by Andrew Hetherington

The Dow Jones Industrial Average (DJIA) is an index of the price fluctuations and volume for 30 bluechip equities. The DJIAs companion index is the Dow Jones Transportation Average (DJTA), which is made up of freight, airline, courier, trucking, and rail equities.

According to Dow theory, the DJTA confirms the movements of the DJIA. This confirmation usually lags after the DJIA has already completed its move. However, there are times when the two move almost in tandem.




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