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Lesson9: Market Movement

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Lesson9: Market Movement

Lesson 9: Market Movement

The market goes through three different moments, which is good to know. In both bearish and bullish momentum, the market will go through 3 various movements:
• Distribution
• Re-Distribution
• Accumulation
• Re-Accumulation

The market goes through three different moments
Market Movement

AccumulationAs you can see, this phase is the slowest. Accumulation often occurs at the end of a downward trend to begin a new uptrend. I advise not to enter during the accumulation phase but to wait for the breakout + the retest before going long.

Re-Accumulation/Re-DistributionOnce the trend passes the accumulation phase and you begin to identify the new trend direction, this phase comes into play. This phase is where most traders will enter, so the market will form a stalemate before continuing on its path. Please note that this phase is the longest among all the 3. In the end, the trend will receive a sudden acceleration. Be careful with this phrase, as the movements can be impulsive.

DistributionThis phase is the beginning of a downward trend. At this stage, many fall into the trap of opening long positions. In this phase, many mistakes are made by traders with little experience, never buying at the maximum or selling at the minimum.

“The secret to being successful from a trading perspective is to have an indefinite and tireless thirst for information and knowledge.”

Paul Tudor Jones

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