DOW THEORY APPLIED

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ADA is showing one of the tenets of the DOW Theory. According to Dow, the market has three phases:
1) An accumulation phase
2) A public participation phase
3) A distribution phase
The accumulation phase represents informed buying of the investors.
The public participation phase is where the prices advance rapidly along with great news.
In the distribution phase, the same "informed investors" who "accumulated" near the bottom begin to "distribute".
Right now, we might expect a couple of months-long Accumulation Phase before any rally due to Public Participation.
For more information on Dow Theory, you can read "Technical Analysis of Financial Markets" by Johny J. Murphy
Trade attivo
Now we are in a typical accumulation phase based on Dow Theory.
Nota
Accumulation phase continues
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