Portfolio Strategy Based On Accumulation/Distribution by Domenico D’Errico & Antonio Zaffino
Whether you are an individual trader or an asset manager, your main goal in reading a chart is to detect the intentions of major institutions, large operators, well-informed insiders, bankers and so on, so you can follow them. Here, we’ll build an automated stock portfolio strategy based on a cornerstone price analysis theory.
Dow theory principles have stood the test of time and they still apply to today’s markets. According to the theory, there are three market phases (Figure 1), and understanding this logic can help traders make sense of how price moves and how bull and bear markets are created ...