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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 -&gt

(Note: The reverse phases apply to a Bear Market: Distribution -> Public Panic -> Despair/Liquidation).