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.
I hope u like this small but important information .
