Chartered Market Technician Practice Exam 2025 – Complete Prep Guide

Question: 1 / 400

In an upward trend, which of the following is the first phase?

Panic phase

Public participation phase

Excess phase

Accumulation phase

In an upward trend, the first phase is the accumulation phase. This phase typically occurs after a prolonged downtrend, where informed market participants start to gradually buy assets at relatively low prices. During this period, the market sentiment is generally negative, as most investors remain skeptical about the asset's potential for recovery or growth. However, those with a deeper understanding of market cycles recognize the value and potential upside in these assets, prompting them to accumulate positions.

The accumulation phase is characterized by higher demand thus beginning to stabilize prices, laying the groundwork for the next phase of the market cycle. Once sufficient buying pressure accumulates, the market begins to transition into the public participation phase, where more investors start to become aware of the upward trend and a wider audience begins to buy in, leading to increased price appreciation. This organic growth is essential as it sets the stage for a more sustainable upward trend.

Regarding the other options, the panic phase typically occurs during a market decline, the public participation phase follows accumulation, and the excess phase emerges after a significant run-up, indicating market euphoria and overextension.

Get further explanation with Examzify DeepDiveBeta
Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy