daw theory

A primary trend will pass through three phases, according to the Dow theory. In a bull market, these are the accumulation phase, the public participation (or big move) phase, and the excess phase. In a bear market, they are called the distribution phase, the public participation phase, and the panic (or despair) phase.The aim will be to buy at the buy points.We should also see that the buy points have high volumes then they become confirm buy points. The higher top next to buy point becomes the exit point and the higher bottom before the buy point becomes the stop loss. In case of a double bottom, bottoms should be formed in minimum 20 days, volume at the bottom or the next buy point should be high, then buy or long position can be taken at the first buy point from the second botom