The new cycle begins with an accumulation phase that generates a trading range.

The
pattern often yields a failure point or spring that marks a selling climax, ahead of a strong
trend that eventually exits the opposite side of the range. The last decline matches algo-
driven stop hunting often observed near downtrend lows, where price undercuts key
support and triggers a sell-off, followed by a recovery wave that lifts price back above
support.

The markup phase then follows, measured by the slope of the new uptrend. Pullbacks to
new support offer buying opportunities that Wyckoff calls throwbacks, similar to buy-the-
dip patterns popular in modern markets. Re-accumulation phases interrupt markup with
small consolidation patterns, while he calls steeper pullbacks corrections. Markup and
accumulation continue until these corrective phases fail to generate new highs.