To start a bullish process in the market, the Indices (or the stocks included in them) begin to fall day after day, week after week, showing minor upward movements with decreasing highs, which is typical for a bear market. Eventually, a level will be reached where weak holders will start to panic and sell all their shares. These weak holders can no longer tolerate losses and are afraid of even greater losses. Since these traders sell, professionals enter the game and start buying, because in their opinion, in the future, shares can be sold at a higher price. Panic sales also allow professional money to buy without causing a significant price increase (accumulation).
This process always occurs, creating both small and large movements. Each beginning movement is directly dependent on the number of shares that have passed from one owner to another.
To create a large bullish movement, an extreme manifestation of this process is necessary, known as the culmination of sales. This phenomenon occurs when there is a large-scale transfer of shares from weak holders, Weak holders are those traders who were locked in high prices, experiencing fear and pressure of losses and who can no longer tolerate it. These weak holders are relieved to sell to strong holders. This allows strong holders who are on the right side of the market to buy and close their short positions without raising prices against them.
The term accumulation reflects the presence of a large interest — an active purchase of shares. In most cases, traders do not protect the interests of companies or their managers during the accumulation process. They have already completed their work in the company. Now they are interested in making money on the price difference. A great way to grab a decent piece is to target fundamentally promising stocks that have fallen significantly in price. The purchase takes place, but there is one subtlety — the purchase should take place as unobtrusively as possible, without causing a significant increase in prices. These buy orders change under the influence of various market conditions. It takes more or less time for the shares to pass to buyers (strong holders). As a result of this transition, the imbalance between supply and demand increases. As soon as buyers remove the restrictions, a bullish movement will begin.
Professional traders understand the psychology of a person. They know that most of the holders of shares who actively monitor their price, these shares can be easily taken away in one way or another, Even the passage of time contributes to the release of traders from the market, because they are waiting for a recovery month after month. Even if these holders have a potentially "winning" deal, they begin to think that the stock will never recover again.
Every time any upward movement begins, it quickly falls again. Large operators quickly and rigidly lower the price with sell orders in order to make even bigger purchases possible, i.e. these fantastic sales are made in order to bring down the price. It seems that they are selling, but the outcome of the process is more purchases than sales by the end of the day. If weak holders survive this period, they will still be shaken up by bad news, which usually comes out just before the start of a bullish movement.
The main reason for any upward movement is the accumulation of shares by large players. Often these players combine interests, creating groups or syndicates. Market makers or specialists should be aware of what is happening! They actively trade on their own accounts and closely monitor these trading syndicates.