Which phase comes first in a bull market?

In a bull market, the accumulation phase is the initial stage where investors start purchasing assets, often after a downturn or a period of sideways movement. During this phase, informed or savvy investors, sometimes referred to as "smart money," recognize undervalued assets and begin to accumulate shares in anticipation of a price increase.

This phase is characterized by relatively low trading volume and stable, rising prices, as the broader market sentiment has not yet fully embraced the bullish outlook. As demand begins to outpace supply, it leads to a gradual increase in prices, setting the foundation for the subsequent phases of a bull market, including increased participation from other investors, a rise in public interest, and ultimately leading to the final explosive move as sentiment turns overwhelmingly positive.

Understanding when the accumulation phase occurs is critical for traders and investors as it precedes the upward momentum typical of a bull market, and recognizing this phase can help in making profitable investment decisions.