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.
Context ∞ Market analysts frequently discuss the cycle exhaustion phase when evaluating the sustainability of current price movements and forecasting future trends. Identifying the specific indicators that confirm this phase remains a subject of ongoing debate among experts. Understanding this concept helps interpret news about market tops or bottoms, providing context for price action.