Market Phase Analysis
figure 4.2 The Three Phases in a Primary Bull Trend on the Daily Chart of the Dow
Jones Industrial Average Index.
Courtesy of Stockcharts.comfigure 4.3 The Three Phases on the 15‐Min EURUSD Chart.
Source: MetaTrader 4accumulation phase Accumulation normally occurs after a deep and rapid de-
cline in prices. Companies tend to underperform with the release of very negative
data, exacerbated by extremely bearish media headlines and news. The unsophisti-
cated or uninformed market participants are usually extremely bearish at this point,
desperately and frantically selling off all shares in the market at whatever price is