📊 Capital Market Chronicles – Episode 303: TECHNICAL ANALYSIS – MARKET CYCLES (Part III)
What goes up… must eventually face reality. 😄
🟡 3. Distribution Phase
🧠 What’s Happening?
The market is near its peak.
Everyone is optimistic.
The news is glowing.
Predictions? “Markets will go up forever!” 🚀
Meanwhile…
👉 Smart money is quietly exiting. 👀
📌 Characteristics
Prices become volatile
High trading volume
Extreme optimism (sometimes unrealistic)
Early investors begin selling
😄 Real-Life Analogy
This is like a party where:
New guests are still arriving 🎉
But the hosts are already putting on their shoes to leave 😄
🔴 4. Mark-Down Phase
🧠 What’s Happening?
Reality kicks in.
Prices start falling.
Confidence disappears.
Fear spreads quickly.
👉 Panic selling begins. 😬📉
📌 Characteristics
Sharp price declines
Increasing then fading volume
Fear dominates sentiment
Investors rush to exit
😄 Real-Life Analogy
Remember the friend who said:
👉 “Markets only go up”?
This is when they say:
👉 “Maybe I’ll wait for things to stabilise…” 😅
This completes the full market cycle loop.
In the next episode, we’ll explore how to actually use this knowledge—
because knowing the cycle is one thing…
👉 Navigating it is another! 📊
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