A market phase where informed investors are believed to be buying an asset strategically, often at lower prices, before a significant price advance.
Accumulation describes a period in the market where prices are relatively stable or declining, yet there is underlying buying pressure from sophisticated investors who anticipate a future price increase. This phase is often characterized by sideways price action, testing of support levels, and the gradual absorption of available supply. Successful accumulation sets the stage for a subsequent price rally.