Technical Analysis

Major Trends have three Phases - Accumulation, Participation & Distribution are the key phases in major trends. In the accumulation phase the informed insiders know that in the current downtrend, markets have fully discounted the bad news, they accumulate at discounted prices. Public participation phase starts when prices are rising rapidly and now even the business & economic news is improving. Distribution phase starts when all the media carries bullish headlines, there is speculative buying on huge volumes. During this last phase the same informed investor who began accumulating near the bear market bottom, begins to distribute before anyone else starts selling.
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