The Different Phases of Market
In this article we gonna take a little detour form volume and teach you about “The Different Phases of Market”.
Table of Contents
Until now we taught you price action in which we learn 3 methods Sideways, Aggressive rejection, Rejection of Higher and Lower prices which is can be applied on all time-frames. Now we gonna explore the same concept but on bigger time scale i.e. through the eyes of Long Term Investors
The Different Phases of Market
There are mainly 4 stages/cycles for any stock & they are repetitive in nature i.e. they move in sequence & repeat again once all 4 are completed.
- These 4 cycles are –
- Accumulation
- Mark up
- Distribution
- Mark down
Accumulation (Sideways)
This cycle comes after the Mark down phase where the sell-off by Smart Money (FIIs, DIIs, big hedge funds etc.) happens to dump the stocks back to retail traders.
Mark Up (Aggressive Initiation)
Distribution (Sideways)
Mark Down (Aggressive Initiation)
'The Different Phases of Market'
That concludes the phases of market in next article will be looking at “Rejection Candles” which works even better with volume.