Traders searching for reliable ways to spot distribution and downside momentum often turn to the Wyckoff method. The markdown phase follows distribution and shows strong selling pressure with lower lows and lower highs. MarketXED charts highlight these phases so users can quickly identify when supply has overtaken demand and price is likely heading lower.
During markdown, volume often expands on down days while rallies fail with diminishing participation. This creates clear visual evidence of institutional selling. Recognizing the markdown phase helps swing traders avoid long positions and instead prepare for short entries near failed rallies or breakdowns of key support levels.
MarketXED overlays these Wyckoff phases directly on price charts, making it easier to combine them with other signals for higher-probability decisions. Understanding each stage improves timing and keeps traders aligned with the dominant trend instead of fighting it.