Accumulation is the increase of amount an amount of a certain asset. In financial markets, accumulation typically refers to a position size in an asset that increases over multiple transactions.
Accumulation phase
Market cycle has 4 main phases: accumulation, mark-up, distribution and markdown phase. The accumulation phase is the first stage of every market cycle. It starts with the end of the previous cycle when the market price has decreased and this is the best time to buy in the market since prices are low and it’s heading towards a downtrend. However, spotting the beginning of the accumulation phase is not easy. So an ideal way to get a sense of the current phase of the market cycle is to follow market news.
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