Section II

DOW THEORY

HISTORY & CONSTRUCTION OF CHARTS

Content

Chapter 2 Dow Theory

Chapter 3 History and construction of charts
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 2
Chapter 3
Chapter 3
Chapter 3
Chapter 3
Chapter 3
Chapter 3
Chapter 3
Chapter 3
Chapter 3
Chapter 3
Chapter 3
Chapter 3
Chapter 3
Chapter 3

Data Intervals
The smaller the data interval, the more
frequent the data collection and the more
detailed but more cluttered the graph will be.
 Chapter 3
Multiline Charts
• Viewing a line chart gives analysts
a quick, concise picture of the
data being discussed

• line charts are often used by

economists to depict long-term
trends

• Using two different vertical scales,

creating both a left y-axis and a right
y-axis, allows for two variables with
much different values to be plotted in
the same graph
Chapter 3
 Chapter 3

Volume
• Price is always at the
forefront of chart
construction

• Volume is commonly
portrayed at the bottom of
the price chart, with its own
scale, using a vertical bar to
represent the total volume
for each interval
 Chapter 3

Equivolume
• The height of the rectangle depicting
the price range

• The width of the rectangle depicting

the volume
 Chapter 3

Volume-Scaled Charts
• Data interval is a unit of volume
rather than a unit of time
Chapter 3