Market States

  1. Accumulation: A period of steady buying, often accompanied by a price increase, as investors accumulate positions.
  2. Markup: A phase of rapid price appreciation, driven by high demand and limited supply.
  3. Distribution: A period of selling, as investors liquidate their positions, often leading to a price decline.
  4. Decline: A phase of persistent price decrease, driven by selling pressure and decreasing demand.
  5. Capitulation: A sudden and intense selling event, often marking the market's bottom.
  6. Absorption: A period of price consolidation, as the market absorbs the selling pressure.
  7. Uptrend: A sustained price increase, driven by increasing demand and buying momentum.
  8. Downtrend: A prolonged price decrease, driven by selling pressure and decreasing demand.