Four Market Phases
Volume Spread Analysis glossary · Wyckoff Phases & Schematics
Definition
The complete Wyckoff market cycle consisting of: (1) Accumulation — professionals quietly buying from weak holders at low prices; (2) Mark-Up — the uptrend as supply is exhausted; (3) Distribution — professionals selling to retail at high prices; (4) Mark-Down — the downtrend as demand is exhausted. VSA signals help identify which phase the market is currently in.
Four Market Phases in plain English
Markets don't just wander randomly — they tend to cycle through four repeating stages, and knowing which one you're in is half the battle. First is Accumulation, where big professional players quietly buy up shares cheaply from nervous sellers; then Mark-Up, the rising trend once few sellers are left; then Distribution, where those pros quietly sell their now-expensive shares to eager latecomers; then Mark-Down, the falling trend once buyers dry up. It's like a savvy trader buying winter coats cheap in spring, holding them, then selling at a premium when the first snow panic hits — VSA signals are the fingerprints that tell you which season the market is in right now.
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