Market cycles represent periods between market peaks or troughs across all asset classes. The piece outlines four fundamental phases: "Accumulation, Mark-Up, Distribution, and Mark-Down," which repeat throughout market history.
Accumulation Phase occurs after market bottoms when experienced investors recognize value while broader sentiment remains pessimistic. The author notes that "smart money enters" during low-volume conditions before retail participation increases.
Mark-Up Phase represents bull market recovery characterized by rising optimism, increased volume, and public participation. This phase offers profitable trading opportunities as "rising prices and bullish momentum make long positions more favorable."
Distribution Phase begins when markets reach peaks. Despite euphoric sentiment, institutional investors "begin to offload their positions quietly" while recognizing overbought conditions. Price volatility increases alongside sideways consolidation patterns.
Mark-Down Phase features bear market decline with dominant fear sentiment. The author emphasizes that "panic often sets in" as asset prices fall significantly and capitulation accelerates downward pressure.
The article advocates process-oriented trading methodology rather than attempting to predict exact cycle timing, suggesting traders should analyze volume, volatility, and sentiment indicators to identify current market phases and adjust strategies accordingly.
