According to Dow theory, a major market
A) Advance has few price fluctuations indicate a new upward trend.
B) Advance does not go straight up, because some investors will take profits.
C) Decline is easier to predict than an advance.
D) Decline typically has a higher level of volume than a major market advance.
E) Choices a and d.

Question

Quizplus · Accepted Answer

Dow Theory suggests that a major market advance does not move in a straight line due to investors taking profits at different times, leading to pullbacks and rallies within the overall uptrend.

According to Dow Theory, a Major Market