The Investor's Guide to Technical Analysis

C. Colburn Hardy. Stock Market Theories. New York: McGraw- Hill, 1978

Author- C. Colburn Hardy

Publisher- McGraw- Hill Book Company

New York, St. Louis, San Francisco, Auckland, Bogota, Dusseldorf, Johannesburg, London, Madrid, Mexico, Montreal, New Delhi, Panama, Paris, Sao Paulo, Singapore, Sydney, Tokyo, and Toronto

Copyright 1978

Stock Market Theories

The most Popular Theories in the Stock Market is the Dow Theory.

" To Dow, THe Stock Market Wasa Barometer of Business. His theory calls the turns of the market and forecasts the business cycle or longer periods of prosperity or depression. Under his concept, there are two major movements of the stock market: the Primiary movement, which last usually 23-33 months or longer, and the secondary movement, which usually last from three weeks to three months and, during this period, retraces one-third to two-thirds of the previous market action- the advances in a Bull Market, the decline in a Bear Market."

Their are many doubters to the Dow Jones Thoery. Many don't like it because it's out-dated. It uses Closing Prices which aren't that accurate because the price may change a lot here and there through the day.

How to Find Winning Stocks

1. Review Weekly Charts.
2. Check the Weekly Stock Market tables.
3. Watch the DAily and Weekly highs.
4. Py special attention to most active stocks.
5. Study the group stock averages.
6. look at the overall stock market.