Accumulation occurs after a prolonged downtrend, which is also known as the Mark down phase. The accumulation and the distribution phases are range bound trading periods where there is no clear direction of price movement. The distribution phase occurs after an uptrend which is also known as the Mark up phase. You may find this article helpful: Price action analysis using the Wyckoff method Accumulation Schematic There are five phases to the Wyckoff accumulation schematic. Phase A Phase A starts with price moving in a downtrend and volume steadily increasing. Buyers begin to enter the market and are trying to change the direction of the market resulting in preliminary support. However, the buying power is not enough to stop the downward movement of price till it reaches a selling climax. A selling climax is a sharp decrease in the prices of stocks or derivatives for a very short period of time alongside increased volume. At this stage, price has been oversold and...
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