GlossaryIntermediate
Distribution Phase
A market phase, generally following a rally, where informed or early holders steadily sell into strength while broader sentiment remains optimistic.
A distribution phase is a market phase, generally following a significant rally, where informed or early holders steadily sell their positions into continued strength while broader market sentiment and public interest remain optimistic, often ahead of a later price decline.
This is the conceptual opposite of an accumulation phase (see Kaavon's "Accumulation Phase" glossary definition) — together, the two terms describe a cyclical pattern that's considerably easier to identify in hindsight than to reliably recognize while it's actually happening.
Examples
- A distribution phase is commonly described as early holders steadily selling into continued market strength while broader sentiment remains optimistic.
- Like an accumulation phase, a distribution phase is considerably easier to identify in hindsight than to reliably recognize while it's actually happening.