Market Cycles Explained: 4 Phases Every Trader Must Know
Fundamentals & Economics · 12 min · Published 2026-03-28
Understand the 4 market cycle phases: accumulation, markup, distribution, decline. Learn to identify where you are. Free guide at Tradyom.
Markets cycle through four phases: Accumulation (smart money buys at lows), Markup (trending upward as public joins), Distribution (smart money sells at highs), and Decline (trending downward as public panic sells). Identifying the current phase helps you align with the dominant market flow.
Frequently Asked Questions
How do I know which market phase we're in?
Look at the broader index (S&P 500) relative to its 200-day MA, volume patterns, sentiment indicators (put/call ratio, VIX), and media tone. Higher lows + bullish MAs = markup. Lower highs + bearish MAs = decline. Range-bound with divergences = accumulation or distribution.
How long do market cycles last?
Full cycles (accumulation → markup → distribution → decline) typically last 4-7 years. Individual phases vary: accumulation and distribution last months, markup phases can last 2-5 years, declines are usually shorter but sharper (6-18 months).