Market structures, learn how to easily identify market condition
Market structures also referred to as market conditions are the simplest form of price movement in the market. Market structure is a simple and basic form of how price action occurs in the market. Price action in the market is always in one of these four market structures.
- Accelerating Phase
- Distribution Phase
- Decelerating Phase
- Accumulation Phase
Accelerating Phase:
This is the upward trending phase of the market, it is often characterized by a series of higher highs and higher lows. This phase of market structure is where bulls are said to be in control of the market.
Distribution Phase:
The distribution phase occurs after a rise in price as the traders who bought at the beginning of the trends begins to sell at a profit and more people are FOMOing into the market the market then enters a range. It is a ranging market after a downtrend. At this phase of the market, there seems to be a balance of power between the bulls and bears until either support or resistance level is broken.
Decelerating Phase:
What goes up must come down. Decelerating phase is the downward trending phase of the market and this phase of the market structure is where bears are said to be in control of the market. It is often characterized by a series of lower highs and lower lows.
Accumulation Phase:
This phase of market structure precedes the Accelerating Phase. It is a ranging market after a downtrend. This phase is where smart money managers and experienced traders begin to buy. At this phase, the general market sentiment is still bearish.
In Conclusion
Although not always obvious, market structure plays out in all markets.
Smart investors who recognize the different parts of a market structure are more able to take advantage of them to profit.
- Zoom in your chart screen to -30%.
- Train your reticular activating system to easily identify these structures in the market.
- Accelerating Phase
- Distribution Phase
- Decelerating Phase
- Accumulation Phase
Accelerating Phase:
This is the upward trending phase of the market, it is often characterized by a series of higher highs and higher lows. This phase of market structure is where bulls are said to be in control of the market.
Distribution Phase:
The distribution phase occurs after a rise in price as the traders who bought at the beginning of the trends begins to sell at a profit and more people are FOMOing into the market the market then enters a range. It is a ranging market after a downtrend. At this phase of the market, there seems to be a balance of power between the bulls and bears until either support or resistance level is broken.
Decelerating Phase:
What goes up must come down. Decelerating phase is the downward trending phase of the market and this phase of the market structure is where bears are said to be in control of the market. It is often characterized by a series of lower highs and lower lows.
Accumulation Phase:
This phase of market structure precedes the Accelerating Phase. It is a ranging market after a downtrend. This phase is where smart money managers and experienced traders begin to buy. At this phase, the general market sentiment is still bearish.
In Conclusion
Although not always obvious, market structure plays out in all markets.
Smart investors who recognize the different parts of a market structure are more able to take advantage of them to profit.
- Zoom in your chart screen to -30%.
- Train your reticular activating system to easily identify these structures in the market.