Accumulation v Distribution

Discussion in 'Trading' started by Here2learn, Sep 30, 2009.

  1. What do you feel is the best way to determine whether the market is in accumulation or distribution?

    Do you prefer fundamental analysis or technical analysis for this determination?
  2. accumulation..mkt goes up.. distribution mkt going down...
  3. OBV

    Best indicator in my opinion
  4. distribution
  5. weld1


    been trying obv , seems to work well...
  6. hausse


    In classical TA you have accumulation-markup-distribution-markdown. I believe it comes from Wyckoff but am not sure.

    The sequence may also extend like accumulation-markup-reaccumulation-markup etc.

    So the thing is to determine what the sideways movements after trending phases are. Is a sideways period after an uptrending period distribution leading to a downtrend or re-accumulation leading to a further price advance?

    Often the patterns are not clear cut. Would be nice to have neatly alternating sequences of trends and sideways moves. In the real world prices often behave rather messy. Breakouts that later fail add difficulty. There are also V-Tops and Bottoms without a sideways phase preceding a trend move.

    But I like to keep the sequence in mind. Occasionally it speaks clearly.
  7. Redneck


    My eyes - and not being a smartass either