Understanding those traits can help traders and investors make better trading decisions and significantly improve their bottom line. There are many types of market cycles, and each cycle and phase has its own traits. Recessions and expansions are types of business cycles that we all have heard of, accumulation and distribution phases are parts of the so-called Wyckoff market cycle, and the forex market has its own cycles which can be based on monetary tightening or easing cycles, a bull market cycle, or a bear market cycle.
Just like in all aspects of our lives, markets also have their cycles.
