THE BULL MARKET:
1) The first phase is known as "accumulation" and occurs when business conditions are still poor and the public is generally discouraged with the stock market.
2) The second phase is usually a fairly steady advance on increasing activity as business conditions and corporate earning begin to improve.
3) The third phase is characterized by highly publicized "good news" Price gains are often spectacular and the public becomes heavily involved.
THE BEAR MARKET:
1) The first phase, known as distribution, is when farsighted investors sell their shares to the less informed public.
2) The second phase is the panic phase. In this phase buying reduces, selling becomes more urgent, and the downward trend of prices accelerates on mounting volume. After the panic phase, there may be fairly long secondary recovery or a sidewise movement.
3) Finally, the business news begins to deteriorate and price resume their decline though less rapidly than before.
The bear market ends when everything possible in the way of bad news has been discounted.
HOW TO PROFIT IN BULL AND BEAR MARKETS WITH TECHNICAL ANALYSIS :
Showing posts with label distribution. Show all posts
Showing posts with label distribution. Show all posts
Thursday, March 15, 2012
Subscribe to:
Posts (Atom)