The Dow Theory describes stock prices as moving in trends analogous to the movement of water.Which of the following statements is not true? A) Major trends resemble tides. B) Intermediate trends resemble waves. C) Short-run movements are like ripples. D) Waves are the most important. E) None of the above (that is, all are true statements)

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The Dow Theory does not state that waves are the most important, but rather that they are an intermediate trend that is useful for identifying the direction of the major trend.

The Dow Theory Describes Stock Prices as Moving in Trends