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Cycle Exhaustion Phase

Definition

Cycle exhaustion phase denotes the concluding period of a market trend, signaling its imminent reversal. This phase characterizes the final stages of either a bull or bear market cycle, marked by decreasing momentum, reduced trading volume, and often erratic price movements. For a bull market, it involves diminishing buyer interest and increasing distribution, while for a bear market, it shows a decline in selling pressure and accumulation. Recognizing this phase is crucial for anticipating market turning points.