Four Market Phases

Accumulation

In this phase, smart money or institutional investors start buying stocks that are undervalued, which are not yet recognized by the general public. The price of these stocks may not move much during this phase. This is after the market bottoms and the 200 moving average (the blue line) is flattening.

Advancing (markup)

In this phase, the demand for the stock increases, and the price starts to rise as more investors start to buy in. This phase is usually characterized by strong upward momentum and increasing volume. Market begins to make higher highs and the price breaks above the 200 moving average and stays above the 200 moving average signaling an uptrend

Distribution

In this phase, the smart money starts to sell their holdings to the general public, who are buying stocks at a higher price. This phase is usually characterized by decreasing volume and momentum, and the price may start to plateau or even decline. Sellers come to dominate this phase and the 200 moving average begins to flatten.

Declining (markdown)

In this phase, the price of the stock starts to decline as demand decreases and selling pressure increases. This phase is usually characterized by strong downward momentum and increasing volume. Price breaks below the 200 moving average signaling a downtrend as well as price making lower lows.

The point of this is to give you a general knowledge of where you are in the current market cycle, that way you know which strategies and screeners you should apply.