What's the difference between Elliott Wave and Dow Theory?

Dow Theory identifies the major trend and turning points using volume and breadth confirmation across indices. Elliott Wave provides granular structure inside that trend (5-3 wave patterns, Fibonacci targets). Most practitioners combine them — Dow for direction, Elliott Wave for entries and targets.

Dow Theory and Elliott Wave answer different questions. Dow Theory (Charles Dow, 1890s) identifies whether the market is in a primary uptrend, downtrend, or sideways trend using volume confirmation and the relationship between the Industrial and Transportation averages. It doesn't provide entry signals or price targets — it tells you the overall market regime. Elliott Wave (Ralph Nelson Elliott, 1930s) provides the granular structure inside the trend: where the impulse is, where corrections terminate, what Fibonacci targets apply. Most professional analysts combine them: Dow Theory confirms the macro regime, Elliott Wave produces specific entries, exits, and targets within that regime. The two methods are complementary rather than competing, and many institutional desks track both simultaneously.

• → Elliott Wave Theory Guide — the 5-3 pattern, rules, Fibonacci, wave degrees
• → How to Count Elliott Waves — 6-step process used on 108 instruments
• → Elliott Wave Fibonacci Guide — the 7 core ratios and how they're applied
• → Rules and Guidelines — the 3 absolute rules + 7 guidelines

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Weekly wave counts on 108 US instruments

Every Monday Artavest publishes fresh wave counts with primary count, alternate count, and explicit invalidation levels.