The trending phase after accumulation when prices rise steadily, driven by institutional demand.
Deep Dive
Mark Up is the trending phase following accumulation where price advances steadily. During this phase, smart money is no longer actively buying (they accumulated during the range) but they are supporting price by not selling. Rising prices attract more buyers, creating self-reinforcing momentum.
Characteristics of mark up include: higher highs and higher lows, breakouts from accumulation ranges that hold, pullbacks on low volume (no supply), and re-accumulation ranges within the trend. The mark up phase is where the biggest gains occur for those who identified accumulation.
The mark up phase continues until distribution begins. Signs that mark up is ending include: volume surging at highs without proportional price gains, supply entering on rallies, and lower highs forming. When mark up ends, distribution begins the cycle anew.
Why It Matters
Identifying mark up phases helps traders stay with profitable long positions.
Related Terms
- Accumulation — A phase where institutional investors gradually buy an asset before a significant price increase
- Distribution — A phase where institutional investors gradually sell an asset before a significant price decline
- Mark Down — The trending phase after distribution when prices fall steadily, driven by institutional selling.
- Trend — The general direction in which the price of an asset is moving. Trends can be upward (bullish), downward (bearish), or sideways (ranging).