Dow theory : 3 phases of major trends.

According to dow theory major trends have three phases

1- Accumulation phase:- If the previous trend was down then this is the phase where buying starts by most of the biggest investors in the world , recognising as most of the " bad news " was assimilated at this point.

2 - Public Participation Phase :- This is the phase where the most of the people who follow technical analysis began to participate. It accurs when price moves rapidly and business news improves .

3 - Distribution phase :- This phase takes place when newspapers begin to print increasingly bullish stories and when economic news is better than ever and when volume and public participation increases.

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