The Price Cycle — How Markets REALLY Move
If you feel price movements look confusing, here’s the truth:
👉 The market is not random. It moves in a repeating cycle.
This idea comes from Richard Wyckoff, and it’s one of the most important foundations in trading.
Let’s break it down clearly and simply.
🧠 First: There Are ONLY 2 Market Structures
1️⃣ Trends
• Uptrend → price moves higher
• Downtrend → price moves lower
2️⃣ Trading Ranges (Sideways)
• Accumulation → early stage of a move
• Distribution → late stage of a move
Every chart you see is always in one of these.
🔁 The 4 Stages of the Price Cycle
🟦 1. Accumulation (Smart Money Buys)
Happens after a downtrend.
• Price moves sideways
• Big players slowly buy
• They test again and again to check if sellers are finished
📌 Only when selling pressure disappears does price move up.
🟩 2. Uptrend (Demand Takes Control)
Now price moves on the path of least resistance: UP
• Buyers are stronger than sellers
• More traders join
• Price makes higher highs and higher lows
This phase continues until price starts looking expensive.
🟥 3. Distribution (Smart Money Sells)
Occurs near the top.
• Big players sell what they accumulated
• Late and greedy buyers enter
• Price moves sideways again
📌 This is where most beginners buy — and get trapped.
⬇️ 4. Downtrend (Supply Dominates)
Now the path of least resistance is DOWN.
• Sellers overpower buyers
• Price makes lower highs and lower lows
• Panic selling begins
This continues until sellers are exhausted → back to accumulation.
🔄 Important Add-Ons
• Pause during an uptrend → Reaccumulation
• Pause during a downtrend → Redistribution
Same logic, same cycle, different levels.
🎯 Why This Matters for You
If you know the phase:
✔️ Avoid shorting during accumulation or uptrend
✔️ Avoid longing during distribution or downtrend
✔️ Trade with the market, not against it
Even if you don’t catch the entire move,
you’ll avoid unnecessary losses.
🧩 Final Takeaway
A full market cycle always looks like this:
Accumulation → Uptrend → Distribution → Downtrend
This cycle exists on every timeframe.
Once you learn to identify these phases —
charts stop looking noisy and start making sense.
If you feel price movements look confusing, here’s the truth:
👉 The market is not random. It moves in a repeating cycle.
This idea comes from Richard Wyckoff, and it’s one of the most important foundations in trading.
Let’s break it down clearly and simply.
🧠 First: There Are ONLY 2 Market Structures
1️⃣ Trends
• Uptrend → price moves higher
• Downtrend → price moves lower
2️⃣ Trading Ranges (Sideways)
• Accumulation → early stage of a move
• Distribution → late stage of a move
Every chart you see is always in one of these.
🔁 The 4 Stages of the Price Cycle
🟦 1. Accumulation (Smart Money Buys)
Happens after a downtrend.
• Price moves sideways
• Big players slowly buy
• They test again and again to check if sellers are finished
📌 Only when selling pressure disappears does price move up.
🟩 2. Uptrend (Demand Takes Control)
Now price moves on the path of least resistance: UP
• Buyers are stronger than sellers
• More traders join
• Price makes higher highs and higher lows
This phase continues until price starts looking expensive.
🟥 3. Distribution (Smart Money Sells)
Occurs near the top.
• Big players sell what they accumulated
• Late and greedy buyers enter
• Price moves sideways again
📌 This is where most beginners buy — and get trapped.
⬇️ 4. Downtrend (Supply Dominates)
Now the path of least resistance is DOWN.
• Sellers overpower buyers
• Price makes lower highs and lower lows
• Panic selling begins
This continues until sellers are exhausted → back to accumulation.
🔄 Important Add-Ons
• Pause during an uptrend → Reaccumulation
• Pause during a downtrend → Redistribution
Same logic, same cycle, different levels.
🎯 Why This Matters for You
If you know the phase:
✔️ Avoid shorting during accumulation or uptrend
✔️ Avoid longing during distribution or downtrend
✔️ Trade with the market, not against it
Even if you don’t catch the entire move,
you’ll avoid unnecessary losses.
🧩 Final Takeaway
A full market cycle always looks like this:
Accumulation → Uptrend → Distribution → Downtrend
This cycle exists on every timeframe.
Once you learn to identify these phases —
charts stop looking noisy and start making sense.
