Sometimes the GROWTH PHASE is characterized as being ACCELERATED, which means that price goes higher at ever steeper angles. In many cases the rising trendline follows a curved path rather than a straight line, arcing higher until at last the growth phase is exhausted and the rising trend line is violated, rendering a SELL Signal.

In the above example you can see that there are actually two growth phases nested side by side with one reaching higher than the other. In each case a substantial decline ensued when the rising trend line was violated, but in neither case did price return to historical lows. price action in 1993-94 indicates that either a botoom is forming or a high-level consolidation is in progress. The time to buy would be after a breakout above 62 or a more aggressive trader might "bottom fish" at 50.

The accelerated growth phase is most often seen as three rising trends, each having a steeper angle than the one before. Ultimately the rate of climb cannot be maintained and the pattern breaks down.

A "text book" long-term SELL Signal is given when the third rising trend line in a growth phase is broken to the downside. Once this has happened, the stock often enters an expired growth phase, which can take the price all the way to historical lows.

In the example above, after a 50% decline MRK appears to be consolidating and may enter another growth phase, but those who heeded the warning issued when the rising trendline was violated and exited at about 47, successfully side-stepped a very nasty down draft.