DOW THEORY

Market can be viewed in 3 basic phases – accumulation, mark up, and distribution phase
The accumulation phase is when the institutional investor (smart money) enters the market, mark up phase is when traders make an entry, and the final distribution phase is when the larger public enter the market
What follows the distribution phase is the mark down phase, following which the accumulation phase will complete the circle
The Dow theory has a few basic patterns, which are best used in conjunction with candlesticks
The double and triple formations are reversal patterns, which are quite effective
The interpretation of double and triple formations are the same