The third and final post in my Dow Theory series. In this post, I address the use of Dow Theory in anticipating broad market trends. I take a look at classical Dow Theory analysis of the Dow Jones Transportation Average and its correlation with the Dow Jones Industrial Average (the Dow Theory proxy for the US economy as a whole).

Part 2 of the Dow Theory post that I posted here a few days ago. For part 1, we looked at an overview of the Dow Theory and its history.

An overview of the Dow Theory which describes the way markets move from day to day and in the long run. A simple system for understanding market actions that could help you to become a better trader or investor. This is the first part in a multipart blog series on the Dow Theory.