Traders searching for Wyckoff phases on charts often focus on the markup stage to confirm bullish momentum and time swing entries. This phase follows accumulation and shows strong demand as price advances with higher highs and wider spreads on increasing volume. Recognizing markup helps separate genuine uptrends from weak rallies that may reverse quickly.
During markup, the market moves from the trading range into a clear uptrend as large operators distribute shares to a broader audience. Volume typically expands on advances while pullbacks remain shallow and controlled. Swing traders watch for these characteristics to align with other signals before committing capital.
Understanding the full Wyckoff cycle improves context around markup. After markup comes distribution, where supply overtakes demand and sets up the next markdown. Monitoring these transitions lets traders protect gains and prepare for potential exits without relying on guesswork.