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 sell at the sell points.We should also see that the sell points have high volumes then they become confirm sell points. The lower bottom next to sell point becomes the exit point and the lower top before the sell point becomes the stop loss. In case of a double top, tops should be formed in minimum 20 days, volume at the top or the next sell point should be high, then sell or short position can be taken at the first sell point from the second top.
Dow Theory
