How trading works and how we should read the market | Introduction Part 1

So in a way the novice investors, who are trying to take profits out of the markets but who are victims of the panic over bear markets and bad news from the media, unwittingly sell in despair and become the counterpart these professionals need to buy and accumulate these assets. This period when the whales are gradually buying up is called the "Accumulation" period".

Once the selling interest is over, and the selling pressure is over, the price can only do one other thing, which is to go up, it is in this phase where the professionals start to have their first benefits, besides that those who catch the movement can enter the market and still have some profits, something like a period of euphoria, where everyone can buy so as not to miss the big movement and make money. According to the phases of the market determined by Wyckoff, this is specifically called the "Market Up Phase".

Once the buying interest is decreasing and strong hands detect this feeling, many investors believing that the rise will have no end, will enter the game too late, so the whales will start selling their assets, which they had already bought at very cheap prices because of the bearish sentiment at that time. This action will sooner or later end the demand and cause a collapse in prices. This whole process is called the "Distribution" phase".

Already in this phase when the strong hands (Whales) have distributed all their assets selling them little by little and the demand has already disappeared completely, prices begin to collapse and the so-called "Market Down Phase" begins, giving way to supply in this sense dominates the game and opening new opportunities for profit, but this time investing downwards in certain assets where we have detected this market phase.