Concept: Volume increases in the direction of the major trend.
For a valid signal, the Industrial Average and the Transportation Average must move in the same direction. If industrials hit a new high but transports lag, the trend is weak. This is a favorite concept in any teoria de dow pdf portable because it prevents false breakouts. teoria de dow pdf portable
Concept: Major trends unfold in three psychological stages:
A. Accumulation Phase (Start of a Bull Market) Concept: Volume increases in the direction of the
B. Public Participation Phase (Middle)
C. Excess/Distribution Phase (End of a Bull Market) Public Panic ->
(Note: The reverse phases apply to a Bear Market: Distribution -> Public Panic -> Despair/Liquidation).