What are the different phases of Market?

In general, the market can be divided into four different phases:

Accumulation Phase: This phase occurs when smart investors start accumulating a particular asset or security as they believe that its current price is undervalued. During this phase, the general public may not be aware of the potential value of the asset or security, and it is not widely traded.

Markup Phase: After the accumulation phase, the price of the asset or security gradually starts to rise as more investors become interested in it. During this phase, the market gains momentum, and trading volumes increase.

Distribution Phase: In this phase, the smart investors who had accumulated the asset or security in the first phase start selling their holdings to take profits. This phase is marked by declining trading volumes and prices.

Decline Phase: This is the final phase, where the prices of the asset or security fall sharply due to selling pressure. Investors who bought the asset or security during the markup phase and held on to it through the distribution phase now start to panic and sell their holdings, leading to a sharp decline in price.

It is worth noting that these phases are not always clearly defined, and they may not occur in a particular order or with the same intensity in every market. The phases of the market are constantly evolving, and it can be challenging to predict which phase the market is currently in or will move into in the future.