Accumulation

Accumulation is the first of four Wyckoff market phases and describes a trading range where demand gradually overcomes supply after a prior downtrend. Within the range, price oscillates between defined support (the "creek") and resistance levels while institutions absorb sellers. The accumulation process is visible through specific events: Preliminary Support (PS), Selling Climax (SC), Automatic Rally (AR), Secondary Test (ST), and finally a Spring or shakeout before markup begins.

Volume signature is critical: declining volume on downward probes within the range indicates seller exhaustion, while rising volume on rallies suggests institutional buying. Accumulation ranges can last days to months depending on timeframe. The phase ends when price breaks resistance with conviction (a Sign of Strength, or SOS) and pulls back to a Last Point of Support (LPS), confirming the new uptrend. Trading accumulation means entering near range lows with tight stops below the Spring low.