AcademyWyckoff MethodLesson 2
M9 · L2Wyckoff Method

The 4 Phases Every Market Goes Through

Every chart is always in one of these 4 phases. Know which one.

What This Means

Phase 1 — Accumulation: Smart money quietly buys while retail is scared (choppy sideways market). Phase 2 — Markup: Price rises as the public starts buying. Smart money still holds. Phase 3 — Distribution: Smart money sells to excited latecomers at the top. Another sideways range. Phase 4 — Markdown: Price collapses. Retail bags the losses. Cycle repeats.

Visual
The Rule

Buy during Accumulation. Sell (or go short) during Distribution. Never chase during Markup or Markdown.

COPY THIS
Do these steps exactly
1
On your chart, find a recent big rally or drop
2
Label backwards: the long sideways range BEFORE the rally = Accumulation
3
The rally itself = Markup
4
The sideways range at the TOP = Distribution
5
The drop after = Markdown
6
Now find where the CURRENT price is in this cycle
7
Write it in your journal: 'XAUUSD is currently in ___ phase'
Common Mistake

Phases can last weeks or months. Don't rush. Patience is the edge.

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