This relates to stock prices moving in trends, analogous to the movement of water.
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A. B. C. D. E. F. G. H.Explanation
Charles Dow, who published the Wall Street Journal in the late 1800s, described stock prices as moving in trends analogous to the movement of water. He postulated three types of price movements over time:
1. major trends that resemble tides in the ocean.
2. intermediate trends that resemble waves.
3. short-run movements that resemble ripples.