Don’t Miss the Wave: Navigating the Markup & Acceleration PhasesEvery strong rally begins with a period of quiet buildup. The price moves sideways, creating a base, while smart money quietly accumulates. Then, at a certain point, something shifts. The Markup Phase begins, and soon after, the market enters the Acceleration Phase — a fast-paced, FOMO-driven surge that catches everyone’s attention. Understanding these phases is key to riding the wave before it crashes.
How to Trade the Markup and Acceleration Phases?
During the Markup Phase, many traders look for opportunities to enter positions gradually, avoiding the temptation to chase after the rapid price movement. A more strategic approach is to scale in on retests of breakout zones or key support levels, which can provide better entry points with lower risk.
As the market moves into the Acceleration Phase, the price tends to surge rapidly, often with little to no pullback. At this stage, it's crucial to protect profits and manage risk. Traders often trail stop-loss orders to lock in gains or take partial profits as the price continues to climb. Parabolic moves are thrilling, but they don't last forever — it's important to stay alert and ready for a reversal or correction when the momentum starts to fade.
🔑 Key Indicators to Watch
During the markup phase, technical signals can help confirm that the move is real. Look for:
Rising volume — confirms genuine interest behind the breakout;
Higher highs and higher lows — a clear sign of trend formation;
Moving averages (20/50-day) — the price staying above these lines often signals trend strength;
RSI and MACD — momentum indicators showing acceleration or potential exhaustion;
Open interest and funding rates — rising figures suggest growing trader participation and leverage.
As the rally gains traction, the market enters the Acceleration Phase. This is where hype replaces logic — the charts go parabolic, social media buzzes, and new traders rush in driven by FOMO. Price action becomes almost vertical, and corrections get instantly bought up. Typical signs of this stage include overbought RSI, spiking volumes, and extreme funding rates — all pointing to overheated market sentiment. Find out what drives the market in our article here .
🪤Common Traps to Avoid
The biggest mistake traders make during these phases is confusing momentum with sustainability. Entering too late, ignoring overheated sentiment, or overleveraging during acceleration can quickly turn profits into losses. Always check whether volume supports the move and watch for sudden spikes in funding rates — they often signal that the trend is near exhaustion.
🏁Final Thoughts
Understanding where the market stands in this cycle helps traders make smarter decisions. The markup and acceleration phases can bring big opportunities, but also major risks for those entering too late. Always rely on your own analysis and use proper risk management. The market doesn’t reward emotions; it rewards patience and discipline.
