In the Technical Analysis Of Stocks & Commodities (Bonus issue 2007), Chuck Dukas analyze trends by breaking up prices into 6 phases,
1. Recovery phase
2. Accumulation phase
3. Bullish phase
4. Warning phase
5. Distribution phase
6. Bearish phase
The author uses the following rules to define phases:
1. Recovery Phase
Close > 50 DMA
Close < 200 DMA
50 DMA < 200 DMA
2. Accumulation Phase
Close > 50 DMA
Close > 200 DMA
50 DMA < 200 DMA
3. Bullish Phase
Close > 50 DMA
Close > 200 DMA
50 DMA > 200 DMA
4. Warning Phase
Close < 50 DMA
Close > 200 DMA
50 DMA > 200 DMA
5. Distribution Phase
Close < 50 DMA
Close < 200 DMA
50 DMA > 200 DMA
6. Bearish Phase
Close < 50 DMA
Close < 200 DMA
50 DMA < 200 DMA
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