There are three principles of technical analysis: the market discounts everything, price moves in trends, and history tends to repeat itself. These principles stem from the Dow Theory, a theory behind technical analysis named after Charles H. Dow, an American journalist who co-founded Dow Jones & Company more than a century ago and invented the Dow Jones Industrial Average. In today’s dynamic market, new and experienced traders can apply these principles to their trading strategies and, ultimately, decide whether they should execute a particular trade. For example, traders can put these principles to good use when analyzing stock charts. Unlike fundamental analysis, which focuses on broader, long-term market trends, technical analysis applies these three principles, which aim to help traders generate short-term market information they can put to use.