market cycle

What are the four stages of the market cycle?

The market moves in a continuous four-stage loop. These stages are:

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  Accumulation Phase: Institutions quietly buy up large positions after a major price decline.

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  Uptrend (Advancing Stage): Institutions push prices higher, attracting retail traders who

  experience FOMO (Fear of Missing Out).

  
  
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  Distribution Phase: Institutions slowly sell off their positions while the market appears to be moving sideways.

  
  
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  Downtrend (Declining Stage): A sharp market breakdown occurs as institutions step aside, causing panic and fear among retail traders who rush to sell at a loss.