Teori Dow diperkenalkan oleh Charles Dow dan Edward Jones yang dipublikasin Jurnal Wall Street di abad 19. Sejak pertama di terbitkan, Teori dow masih banyak dipakai para teknikal analis dan bahkan bisa dibilang teori dow merupakan induk dari analisa teknikal berkembang hingga saat ini.
Prinsip Dasar dalam Teori Dow :1. The Averages Discount Everything
2. The Three Trends
a) Primary Trends
b) Secondary Trends
c) Minor Trends
3. Major Trends Phase
1) Bulls >> Three Phase
2) Bear >> Thress Phase
4. Principle Confirmation
a) The two averages must confirmation
b) Volume goes with the trend
c) "Line" may substiute for secondaries
d) Only closing prices used
e) A Trend should be asusumed to continue in effect until such time as its reversal has been definetely signaled.