Accumulation Manipulation & Distribution

Accumulation Manipulation & Distribution

Accumulation Manipulation & Distribution

ACCUMULATION

Accumulation is a phase when buyers are controlling the market. If the volume is increased when the market is correcting in a downtrend, then this typically means that more buyers are stepping into the market and a reversal could occur. Usually, these are confirmed when:

a) Volume increases compared to the day before but closing prices are higher

b) Price hardly moves down, even though volume has increased

Distribution

A phase when sellers are controlling the market. If the volume is increased when the market is correcting in an uptrend, then this typically means that more sellers are stepping into the market and a reversal could occur. Usually, these are confirmed when:

a) Volume increases compared to the day before but closing prices are lower

b) Price makes a larger move from its anchor point

Manipulation

Fake move or trap move to purge liquidity and induce traders to the wrong side of the market. Usually, in this phase market draws many panic buyers and sellers

a) Volume decreases with the price move

Indicators - Volume, Onsen Discovery