Which of the following is not an assumption of the Dow Theory?Select one:a.The price confirms the trend.b.Primary trends have three phases.c.The market is made up of three trends.d.The averages discount everything.
Question
Which of the following is not an assumption of the Dow Theory?Select one:a.The price confirms the trend.b.Primary trends have three phases.c.The market is made up of three trends.d.The averages discount everything.
Solution
The statement "The price confirms the trend" is not an assumption of the Dow Theory. The Dow Theory is based on the analysis of market trends, but it does not assume that the price confirms the trend. Instead, it suggests that the market trends are indicative of various factors, including economic conditions and investor sentiment, which may influence the price.
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