Understanding Market Cycles

Learn how to identify different market cycles and make informed investment decisions based on historical patterns and economic indicators.

20 min read

Market Cycle Basics

Accumulation Phase

The market has bottomed and early adopters begin to buy, believing the worst is over and value exists in the market.

Mark-Up Phase

Prices rise as more investors enter the market. Technical indicators confirm the trend and market sentiment becomes increasingly positive.

Distribution Phase

The market reaches a peak and early sellers begin to take profits. Trading volume often increases while prices move sideways.

Test Your Knowledge

Question 1 of 15 Score: 0

What is typically the first phase of a market cycle?