The financial market doesnt operate randomly, it follows a constant cycle of psychology and money flow. Just as the weather has four seasons, the market also has four phases. And here is how they function in each phase.

🔹 Accumulation Phase

  • Price moves sideways in extreme frustration. Bad news abounds, but the price doesnt fall further.

  • This is when whales are quietly accumulating. Buy and hold patiently.

🔸 Growth Phase

  • Price breaks out of the accumulation zone and rises sharply. Good news starts to appear.

  • This is the easiest phase to make money, trade in the direction of the trend and add to your positions.

🔹 Distribution Phase

  • Price fluctuates sharply at the peak but cannot rise further. Good news comes out in droves to lure novices into buying at the peak.

  • Whale are transferring the shares they accumulated from the bottom to you. Exit your positions and stay out of the market.

🔹 Downtrend Phase

  • Price falls freely, panic ensues.

  • Dont catch a falling knife, cash out and hibernate, waiting for a new cycle.

Do you know how to identify cycles? Click here to get a refund on your transaction fees with web3 wallet!

This article is for reference only, this is not investment advice. Please read and consider carefully before making a decision.