Phase B (Accumulation)
Volume Price Analysis glossary · Support, Resistance & Breakout Mechanics
Definition
Cause-building phase: insiders absorb remaining supply through repeated tests of support and resistance within the trading range; can last weeks to months.
Phase B (Accumulation) in plain English
After the crash stops (Phase A), price stops trending and just chops sideways in a range — like a lid on top and a floor on the bottom. Phase B is that long, boring sideways stretch, and it's where the big buyers do the real work: quietly soaking up shares from anyone still willing to sell, dipping to the floor and rising to the lid over and over. Traders call this 'building the cause' — the more shares get absorbed here, the bigger the eventual up-move (the 'effect'). It can drag on for weeks or months, which tests everyone's patience, but that patience is exactly the point: the pros are accumulating cheap stock while impatient sellers hand it over.
Also called: Accumulation
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