Stock Market Measures



Stock Market Measures

Calculations

Dow Theory

Dow Theory is use for the trend analysis of market but before analyzing it, certain aspects should be noticed like peak period and tough period. An upward trend shows to but the stock in the period while the downward trend shows that an investor does not buy the stocks in the downward period (Brown et. al, 1998, 1311-1333).

Advance-decline line

The formula of advance decline line method = number of advancing stocks - number of declining stocks + Previous Period's advance decline Line Value.

For period # 1 = 1120-2130 = -1010

For period # 2 = (1278-1972) ...