Dow Jones is one of the most accomplished scholars in the American stock market movement. He noticed that there were some repeated and orderly fluctuations in the seemingly chaotic market operation. Although Tao can't quantitatively study the market movement in terms of time and space, he at least grasped the orderly characteristics of the market movement, so Tao, like Pigou, must have deeply realized the balance between man and nature who control the order of the market movement. Tao expounded two theories, which have stood the test of history and become the basis of modern market technology analysis theory.

The first theory of Dow Theory is that the market is characterized by three upward swings in its main upward trend.

He attributed the first swing to the overly pessimistic price rebound from the previous sharp decline;

The second upward swing is associated with the improvement of enterprises and profits;

The third and final fluctuation is the deviation between price and value.

The second theory of Dow's theory is that at a certain point of every market swing, whether it is rising or falling, there will be a reverse movement, which will offset this swing by 3/8 or even more. Although Tao did not intentionally associate these laws with the influence of human factors, the market was also created by people, and the continuity and repetitiveness that Tao once noticed must come from this. Later, Eliot went further on this basis, concretized and visualized Dow's theory, put forward the wave theory, and quantitatively studied the market movement with some specific theories such as Fisher series and golden section theory, but this is still only a preliminary and general derivation, and the qualitative achievements are greater than the quantitative ones.