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Dow theory asserts that major market trends are composed of three phases: an accumulation phase, a public participation (or absorption) phase, and a distribution phase. These phases are cyclic in nature and repeats over the time.

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.

Public participation phase: This is the phase where the most of the people who follow technical analysis began to participate. It occurs when price moves