Charles H. Dow-The founder of Technical Analysis

Charles Henry Dow was a journalist.He was born in Sterling, Connecticut on November 5, 1851.
He founded the Dow Jones & Company with his two reporter friends.Dow was also the founder and first editor of The Wall Street Journal.He developed some certain methods to understand and analyse the dynamics of the market which are known as Dow Theory.

The stock market has three movements:
1.Primary or major movement ,which lasts from one year to several years,
2.Intermediate Movement,which lasts from 10 days to 3 months(Retraces to 33% to 66%),
3.Minor movement, which can last few hours to a month.

The stock market has three trends:
1.accumulation,
2.public participation &
3.distribution.

He introduced the Dow Jones industrial average in 1896,by tracking the closing stock prices of twelve companies, adding up their stock prices and dividing them with twelve.One year later he introduced railroad averages.His view was ,if industrial average and the railroad average go together then it is a bullish signal for the economy.He also insisted to focus on volume and said steady increase in volume gives the idea that trend is getting stronger.He died in Brooklyn, New York,in 1902 at the age of 52.