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Market Intelligence › Basic Terminologies
The framework of accumulation, markup, distribution and markdown
Published by The Retail Trader · JUL 26, 2026 · Market Structure
The market does not move steadily up or down. It passes through four kinds of phases, and the right behaviour differs in each. This is a framework, not a prediction tool.
Accumulation is the long boring phase when the price stays in a range and nobody is talking about it. Markup is when the trend starts upward.
Distribution is a range again, but this time at a height, where interest is high but the price is not moving ahead. Markdown is the decline that follows.
The framework's job is to set expectations:
• It is normal for trend strategies to fail in a range phase.
• It is also normal for mean reversion strategies to fail in a trend phase.
• The phase is not certain in real time — it becomes clear only by looking back.
• Changing position size according to the phase is more practical than changing the strategy.
The biggest benefit of this framework is patience. Accepting a boring phase as boring and trading less in it — that is the one behaviour that affects the whole year's result the most.
This article is educational only — it is not a buy or sell recommendation, it makes no claim of guaranteed returns, and it is not advice. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.