A period in a market cycle where smart money is selling assets to less informed market participants.
The distribution phase is a period in a market cycle characterized by the gradual selling of an asset by informed investors or 'smart money' to the broader, less informed market. This occurs after a significant price appreciation, typically at or near the peak. During this phase, selling pressure gradually absorbs buying demand, often leading to sideways price action or a potential topping pattern before a price decline begins.