Markdown
Volume Price Analysis glossary · Wyckoff'S Laws & The Four Market Phases
Definition
The phase of rapid price decline following distribution; insiders drive prices down to begin accumulation.
Markdown in plain English
Markdown is the 'crash' phase — the stretch where price falls fast and hard after the big players have quietly finished selling their holdings to the crowd. Picture a store that has already sold off its overpriced stock to eager shoppers, then slashes prices to clear the shelves. The insiders wanted out at high prices, and now they let it drop, aiming to scoop it back up cheaply once panic sets in. Markdown is basically the painful downhill ride that sets up the next bargain-hunting phase.
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