The Bullish Cycle: Phases of Market Accumulation and Breakout 👇
1. Breakout from Accumulation
Initiation of a price movement after a period of consolidation.
2. Retest Phase
A brief return to previous levels to confirm the breakout (some breakouts skip this or retest quickly on lower timeframes).
3. Formation of Strong Bullish Candles
Significant bullish candles appear, indicating strong buying pressure.
4. Consolidation Period
The market may stabilize for 7-15 days, allowing time for potential profit-taking or indecision.
5. Formation of Additional Strong Bullish Candles
Further strong bullish candles emerge, reinforcing the upward trend.
6. Subsequent Consolidation Period
Another phase of market stabilization lasting 7-15 days may follow.
7. Repetition of the Cycle
This process continues until the market reaches a distribution phase, often referred to as the S3 zone.