Marknadsfaserna

Marknadsfaserna, or market phases, describes the cyclical nature of financial markets. These phases are generally categorized into four distinct stages: accumulation, markup, distribution, and markdown. Each phase represents a different sentiment and activity level within the market.

The accumulation phase occurs after a significant decline. Smart money, such as institutional investors, begins to buy assets at lower prices, anticipating a future uptrend. This phase is characterized by sideways price action and increasing buying interest, though it may not be immediately apparent to the broader market.

Following accumulation is the markup phase, also known as the bull market. Prices begin to rise steadily as demand outstrips supply. More investors join the trend, driven by positive news and increasing confidence. This is typically the longest phase, characterized by strong upward momentum.

The distribution phase signals the end of the bull market. As prices reach their peak, early buyers and smart money start to sell their holdings, taking profits. This selling pressure creates resistance, and the market often moves sideways or shows signs of weakening. Distribution is characterized by volatility and indecision.

Finally, the markdown phase, or bear market, begins. Prices start to decline as selling pressure overwhelms buying interest. Fear and panic can set in, leading to rapid price drops. This phase continues until prices fall to levels where accumulation can begin again, restarting the cycle. Understanding these market phases can help investors make more informed decisions.