Thread by @TechnoFunda6

Thread 🧵explaining #MarketCycle

(Accumulation - Advancing - Distribution & Decline Phase)

Basics of #TechnicalAnalysis

(Must read for #TA learners)

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@rohanshah619 / @PAlearner / @Puretechnicals9

#TechnicalAnalysis #StockMarket

1⃣

✅Market Cycle refers to period between two latest highs or lows in case of any security (stock, bonds, commodity, currency, etc).

✅It refers to the phases in which price of any security moves.

#MarketCycle #StagesofMarket #TechnoFunda #StockMarket

2⃣

Understanding stages of market & how price moves during these stages helps a trader to identify new trading opportunities & lower their trading risk.

Market cycles goes through 4 stages -

⦁Accumulation
⦁Advancing
⦁Distribution
⦁Declining

#MarketCycle

3⃣

🌟Accumulation Phase🌟

✅It is first stage of every market cycle.

✅During this stage people starts accumulating the security when it is trading in a bounded range during consolidation.

✅This phase occurs after completion of declining phase.

#MarketCycle #StockMarket

4⃣

🌟Advancing Phase🌟

✅It is second stage of every market cycle.

✅Occurs after accumulation stage when price rises, often following Higher Highs - Higher Lows (HH-HL) Structure.

✅Increased volume is seen during this phase, especially when breakout happens.

#MarketCycle

5⃣

🌟Distribution Phase🌟

✅It is third stage of every market cycle.

✅During this phase the security start losing its momentum as people starts booking profits.

✅Just like accumulation, during this phase also the security is seen trading in a bounded range.

#MarketCycle

6⃣

🌟Decline Phase🌟

✅It is last stage of every market cycle.

✅It occurs after distribution stage when price falls, often following Lower Highs - Lower Lows (LH-LL) Structure.

✅Increased volume is seen during this phase, especially when breakdown happens.

#MarketCycle

7⃣

Now that you have understood all these phases of a market cycle, you should try to train your eyes to spot all these phases of market cycle on charts.

#MarketCycle #StagesofMarket #StockMarket

8⃣

For real life example of #MarketCycle on chart refer our case study on #KKCL

https://twitter.com/TechnoFunda6/status/1468996640816001024

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