The sixth step is to begin to know when the accumulation and distribution do take place because they help to buy or sell at the early stage after the initial breakout.
Before a bullish trend, there is an accumulation. On the other hand, a distribution precedes a bearish trend.
In both instances, the influential financial markets dealers start to build a stake in many financial instruments. Those trading or investing activities cause trading volume surges before the price-action reveals a healthy first Elliott wave.
By mastering the accumulation and distribution trading activities of the leading market players, one will greatly improve the market timing and avoid being a financial market late comer.