Stock Life Cycles – More.

The principle of Confirmation

Arthur Sklarew, is author of ‘Techniques of a Professional Commodity Chart Analyst’. In writing about the rule of multiple techniques  he states:

Technicians know very well that price chart analysis is not an exact science. No single chart technique yet discovered is infallible. Despite this lack of perfection, price chart analysis can very often give reliable forecasts of trend direction . . . Confirmation is therefore an essential component of every valid chart signal. In addition to comparing price charts of different contract months and time scales, it has been my experience that the accuracy of any technical price forecast can be improved greatly by the application of a principle that I call the “Rule of Multiple Techniques.”

The Rule of Multiple Techniques requires that the chart technician not rely solely on one single technical signal or indicator but look for confirmation from other technical indicators. The more technical indicators that confirm each other, the better the chance of an accurate forecast. The logic behind this rule is that, if individual time proven techniques tend to be right most of the time, a combination of several such techniques that confirm each other will tend to be right even more frequently.

Is it possible for share prices to go higher while the stock life cycle goes through its three stages. This question is asked here:
Quote:
On the Accumulation Realization Distribution theory on the NIFTY, I have a couple of questions:

1. Should the distribution bring back the level to old Accumulation levels? Would it not be possible for the base itself is moved up higher because of accretion in value?
2. What if the the given period too is part of accumulation phase spreading over a span of 2/3 years? This would mean that another realization phase is waiting to happen.

Regards
Sudarshan (Namesake)

My Notes:
Hello. First of all, you have a very nice name!
When a stock is in a long term bull market, it does go through the stock life cycle, but each accumulation levels keeps on moving up. It is not necessary that the process of distribution should bring prices back to the original accumulation level. I am giving a chart which shows this clearly.