Markets trend. Those trends can be divided in 3 + 1 phases:
Phase 1: Other names include Accumulation/Reversal/Wave 1
No one really know we are in phase 1 until much later.
Phase 1 is very often followed by a deep correction. This was spotted by Elliot (from Elliot Waves) as well as Dow I think?
From the market itself this appears to be true. We can see it...