# Accumulation - Distribution - None of the Above



## johnnyg (19 May 2009)

Hey guys, thought it might be interesting to start a thread on stocks showing  possible signs of Accumulation, Distribution or None of the Above. 

Quick definitions - 

*Accumulation - *Buying of stock over a period of time by institutional or professional investors in order to avoid raising the share price with one large purchase.

*Distribution - *The systematic sale of a large amount by a single entity over a period of time rather than all at once, to avoid putting downward pressure on the price.

*None of the Above - * Day traders churning stock to each other. LOL

Ill start with a chart of MOF that I picked up from another thread. You can see that from mid December there's been a massive increase in volume and more so since mid march where more then 1.3billion shares (4.2billion on issue) have changed hands within a tight 0.06cent trading range.

Is someone accumulating? Is there distribution going on? Or are day traders simply churning stock?


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## sammy84 (20 May 2009)

I think MOF has become a large target of day traders. It is trading in such a narrow range consistently for a while now. If there was accumulation going on during this time you would think that the big money test the price lower in order to get rid of the weak holders and pick up cheap stock.

Good idea for a thread though. When incorporated with some VSA strategies this could be interesting.


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## beamstas (20 May 2009)

MOF, Day traders paradise

Greens are long (red sells)
Light blues are shorts (violet covers)







A short/long of the edge pivot point would of got you a near 100% win rate

Normally the volume would be less for accumulation
As the stronger holders wont sell so the turnover will just diminish


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## sammy84 (20 May 2009)

beamstas said:


> Normally the volume would be less for accumulation
> As the stronger holders wont sell so the turnover will just diminish





Not entirely correct. There could very easily be absorption at a certain price at its lower boundary. To know whether there is accumulation it is also necessary to view volume in comparison to the what happened during that bar.


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## skc (20 May 2009)

sammy84 said:


> I think MOF has become a large target of day traders. It is trading in such a narrow range consistently for a while now. If there was accumulation going on during this time you would think that the big money test the price lower in order to get rid of the weak holders and pick up cheap stock.
> 
> Good idea for a thread though. When incorporated with some VSA strategies this could be interesting.




It is actually difficult to day trade MOF because of the small range and deep order book. By the time you put your order in you are 500,000 or so in the queue. Or if you hit the ask then you are effectively giving half the range away, and there are still 450,000 units on the ask for the same price.

At least that's my interpretation of it. Someone more experienced in day trading can comment...


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## sammy84 (20 May 2009)

SKC that does make sense. Day trading and market depths arent my strong points.


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## ThingyMajiggy (20 May 2009)

Could this be re-distribution for a further down move following the bear move in the background? 

I'm at work at the moment, so can't check out the chart properly. 

Good idea for a thread though, should be interesting.


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## Aussiest (20 May 2009)

beamstas said:


> MOF, Day traders paradise
> 
> Greens are long (red sells)
> Light blues are shorts (violet covers)




Brad, if you don't mind me asking, how does your software differentiate between what was long, short, or covered for the day? Is this something you did? Or, can you program it into your software?


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## johnnyg (20 May 2009)

I myself was thinking Distribution. Does the smart money know something that we dont and for them to unload their stock without moving the price to 0they have to create churn which in turn brings in the day traders for them to sell their stock to?

Glad to see the threads got some interest. Might be an interesting case study.


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## beamstas (20 May 2009)

Aussiest said:


> Brad, if you don't mind me asking, how does your software differentiate between what was long, short, or covered for the day? Is this something you did? Or, can you program it into your software?




It's just amibroker
I coded it myself

Oh and its not other peoples trades

Its just a simple system i am working on

Works well on MOF Because of the range it had there


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## Aussiest (20 May 2009)

beamstas said:


> It's just amibroker
> I coded it myself
> 
> Oh and its not other peoples trades
> ...




Well done on the coding! Pity they're not other people's trades, you could gleen a lot of information from those .

Btw, you can get a record of stock lending volume from the ASX website.


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## skc (20 May 2009)

johnnyg said:


> I myself was thinking Distribution. Does the smart money know something that we dont and for them to unload their stock without moving the price to 0they have to create churn which in turn brings in the day traders for them to sell their stock to?
> 
> Glad to see the threads got some interest. Might be an interesting case study.




With accumulation, wouldn't someone crop up in the substantial shareholder notice already? That might be one way to tell that it is in fact distribution.

But I guess distribution can have many reasons. Like instos selling MOF so they can buy into GPT and Dexus raisings. Not necessarily anything wrong.

Isn't MOF still on the short sell ban list given that it's a property trust?


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## beamstas (20 May 2009)

skc said:


> Isn't MOF still on the short sell ban list given that it's a property trust?




Yep


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## Cartman (20 May 2009)

considering the number of punters in hurt land since last financial year on MOF, the volume could just be redistribution of S/Holdings --

if you held 100,000 at a buck last year ---- sell now take a tax loss this financial year of 80 odd % then rebuy the same 100,000 shares back --- that way u can keep the porche for another year  ---


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## skc (20 May 2009)

Cartman said:


> considering the number of punters in hurt land since last financial year on MOF, the volume could just be redistribution of S/Holdings --
> 
> if you held 100,000 at a buck last year ---- sell now take a tax loss this financial year of 80 odd % then rebuy the same 100,000 shares back --- that way u can keep the porche for another year  ---




I have forwarded this post to the ATO. Expect ATO agents to be knocking on your door soon, Cartman. The offence is known as doing the laundary for tax purpose...


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## beamstas (20 May 2009)

skc said:


> I have forwarded this post to the ATO. Expect ATO agents to be knocking on your door soon, Cartman. The offence is known as doing the laundary for tax purpose...




I'll do the laundry for a porshe
I'll even do the tax mans laundry for one!
:knightrid


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## CanOz (20 May 2009)

Cartman said:


> considering the number of punters in hurt land since last financial year on MOF, the volume could just be redistribution of S/Holdings --
> 
> if you held 100,000 at a buck last year ---- sell now take a tax loss this financial year of 80 odd % then rebuy the same 100,000 shares back --- that way u can keep the porche for another year  ---




A bit early for tax loss selling isn't it, i thought most of that occurred in June?

Cheers,



CanOz


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## Cartman (20 May 2009)

skc said:


> I have forwarded this post to the ATO. Expect ATO agents to be knocking on your door soon, Cartman. The offence is known as doing the laundary for tax purpose...




 
i know nothing !!
the butler did it !!
i was away at the time !!
speak to my accountant !!
what shares !!
my wife does the books !!
politicians spend how much on their travel allowance -- i want some of that!! 

laundry (synonym: trading )  --- if u do your laundry early, no one notices u hanging it out to dry.


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## ThingyMajiggy (22 May 2009)

Anyone got any more thoughts on MOF? 

Personally, it appears to have respected support from back in March, it may have a slight rebound, but I'm not expecting anything major, as there is a fair bit of weakness in the background.

...but I'm on L plates, so don't take what I have to say too seriously, I'm using this thread as a learning and practice thread, and to see what others have to offer. 

Hopefully this thread stays alive.

P.S- Appears as though the FTSE has some weakness too. 

SC.


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## weird (22 May 2009)

Stuck in a trading range, so would look at confirmed breakouts, with some buffer, support has been tested a few times. It hit a low, but no firm reversal. Same volumes shown in the down trend, as in the trading range, too difficult to read, would look at another stock.

Either a long or shorting opportunity.


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## kam75 (23 May 2009)

OBV rising = accumulation
OBV falling = distribution
OBV flat = profit taking or inactivity


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## motorway (23 May 2009)

What does Accumulation do

It makes stocks that start a trading range Dear
finish a trading range Cheap

This involves Volume ( change of hands )
But also expectations ( the more important ? )

Expectations change as swings up and down test the upside and the downside of the range.

MOF is weaker than the market
it made a  bullish statement off the low
That ended the down trend ( or at least has created a pause )
Broken the downward stride and taken the "work" through the trend channel

The rally from the low is weak
and the trend has turned down again with the recent column

( drawn some trend outline lines )

The earlier congestion zone was a weak pattern
But could have been Preliminary demand
IF so the bullish statement off low ( spike reversal )
Was a Selling climax

The automatic rally has moved sideways
 And a secondary test will help reveal what the "Work" across the top since . was...

Or maybe  that ground can be held and some sort of rally ensues

Every reversal of trend now could be definitive..


The sponsorship has been aggressive ( but to the down side )
conforming to the 45 degree diagonal
( This will be in memory of weaker hands )

POINT --->ENDS need not be New Beginnings

That is why the right question has be asked

Is there accumulation....

The subsequent responses are what reveal ( the response to each change of column  whether step backs or changes of trend )]

And it is the lack of follow through that builds cause 


This chart is scaled 
commensurate to the 75 pt XAO chart
IS the stock ahead or behind 
as regards buying and selling waves ?

Aggressive Accumulation the stock should be ahead

click to expand


motorway


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## Timmy (24 May 2009)

Motorway - one question re this MOF chart please.  

The volume histogram on the right hand side of your chart shows huge volume having built since about January between 16 and 22 cents (pic attached).  Has this volume build (and I assume it is transfer of ownership) contributed to your view here?


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## motorway (24 May 2009)

> The number of price
> changes and the manner in which they combine themselves have a more scientific foundation
> than the influence of volume in the anticipation of price movements.




We must have volume , and volume is important
But I have seen large volume build across rows like this and lead nowhere
or opposite to what might be expected




> PRICE CHANGES VERSUS VOLUME
> Let us analyze the effect of the influence of volume as against the effect of price
> change only. What is the aim of all methods which seek to anticipate stock price movements?




Good Question .... The very Hub !




> Do we seek to know how many shares are exchanged? Or, do we
> desire to determine whether stocks are passing from weak holders into strong
> hands and vice versa? All will agree that it is the answer to the latter question which will permit us to profit most from our knowledge.




Accumulation Distribution or Nothing---- Volume can be Nothing
unless there are strong hands

What is a stronger hand ? One buying or selling operating on a longer time horizon than the one they are buying or selling  from/to .

( OBVIOUS--- If we are on the the same time frame there can be lots of volume ( effort ) But NO RESULT  of any consequence )

BUT there is always _PRICE VOLUME & TIME  _VOLUME is always VERY IMPORTANT

The P&F chart  boxes are an aggreagte of all three qualities



> Taking for granted the
> known fact, namely, that each transaction printed on the tape is at the same time
> a purchase by one and a sale by another, it is of little consequence to know the
> exact number of these transactions. What we desire to ascertain is where in the
> ...






> In a speculative market, where the laws of supply and demand are operative, we
> must have fluctuations in prices. These fluctuations are due mostly *to differences
> of opinion *




Every vacillation of HOPE AND FEAR
DISGUST and GREED... 




> Experience has taught us that a great number of fluctuations in a congestion area usually
> indicates either accumulation or distribution. When stock is offered for sale at the
> market, we must take the nearest bid price; and when one is anxious to purchase
> a stock and offers to take it at the market, he must pay the nearest asked price. The
> ...





VOLUME is EFFORT always ask what is the result

VOLUME is Trades that happen for whatever reason

CAUSE is as much the volume traded as volume withheld

The selling that did not happen on a particular swing






> Furthermore, let us consider the effect of supply and demand on any product or
> commodity, be it stock, equities, or horseshoes. When demand is greater than
> supply, prices move upward. Should supply be greater than demand, then prices
> are forced downward. When demand has absorbed all the supply at any given
> ...








> Volume, as well as price fluctuation, can be artificially manipulated. Manipulations
> of volume at any given price level are deceptive and cannot reveal the difference between true and artificial demand. As contrasted with that principle, consider
> how easy it is to detect artificial support resorted to for the purpose of distribution
> when many changes in the price of a stock show that it cannot absorb the
> ...




STILL----- Volume is important and one can go back in time and play that MOF chart forward day by day and watch the volume "come in"

all is DEMAND and SUPPLY
all is CAUSE AND EFFECT

and thirdly  There must be EFFORT AND RESULT

But to have any effect one needs a cause to build
This is the change in expectations that are the turning points

What is PRICE ( easy )  what is VALUE  ?
The answer involves expectations

This is what support and Resistance is
and there is support as long as expectations do not change..
and differences of opinion hold

With the P&F chart
we already ALWAYS have a totally optimized chart 

And No new box forms unless there is change in all three of Price Volume  & Time..



> The columns of squares are designed
> so as to permit the plotting of *true trend lines *and to force the development of
> *true geometrical and symmetrical patterns *which facilitate accurate comparisons
> and dependable diagnosis.




True True True ...

A Manipulation Detector
is there accumulation or just 1001 brokers shuffling paper

The downtrend = 100% manipulation ( like SOROS definition very old idea )
This sideways movement  ?

True geometrical and symmetrical patterns will facilitate accurate comparisons
and dependable diagnosis

Volume is important
But needs context
It is only one element that weaves the boxes of the point and figure chart.

Interestingly the topic of the thread 
is an old Richard Wyckoff quote  WAVES & WINKS  are as good as a nod 

motorway


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## MRC & Co (24 May 2009)

motorway said:


> The downtrend = 100% manipulation ( like SOROS definition very old idea )
> 
> motorway




Hi motorway,

What do you mean by Soros definition that the downtrend = 100% manipulation?


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## motorway (24 May 2009)

BACK TO THE 5TH OF MARCH

Give an idea of the dynamic nature of P&F

The chart is a continuous flow

OK Now we have the volume appearing at the earlier congestion

~ .28  That buying was DUMB and too early
Sellers; we knew we had them... one look at the pattern of fluctuations..

Finally met some buyers.... Difference of opinions emerged

HOPE met FEAR.... But you know Hope sometimes makes you stay on a sinking ship.. Hope was the one ILL that remained in Pandora's Box ..

Congestion will always tend to equate to volume

From here a real bout of fear took hold 
and even more hopeful buyers 

No new low ground
and a reversal ended the down trend

A significant zone of one box movements

ceiling or floor ?

That price could not move higher makes a negative statement..

Work was done energy transferred
a high or low was built from the changing expectations

motorway


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## motorway (24 May 2009)

MRC & Co said:


> Hi motorway,
> 
> What do you mean by Soros definition that the downtrend = 100% manipulation?




In his most recent book
he uses the word manipulative = reflexivity

demand and Supply are not independent they are the same thing
because everyone is trying to make a BUCK = Manipulating



> The
> shape of the supply and demand curves cannot be taken as independently
> given because both of them incorporate the
> participants’ expectations about events that are shaped by
> ...







> Understanding a situation and participating in it involves
> two different functions. On the one hand people seek to understand
> the world in which they live. I call this the cognitive
> function. On the other, people seek to make an impact on the
> ...




This is the same idea behind age old tape reading..

motorway


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## motorway (24 May 2009)

MRC & Co said:


> Hi motorway,
> 
> What do you mean by Soros definition that the downtrend = 100% manipulation?




MRC -- also in the angle of 45 = no fair coin toss 

Other stocks eg TLS much subtler  
Drifting downtrend
A Suckers Stock

But clear on the 5 box reversal

.10 is the same scale as MOF
but sneaky downtrend that keeps hope alive


motorway


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## MRC & Co (24 May 2009)

Thx motorway, some good posts there, his concept of reflexivity is so simple, and so obvious, I am surprised he is still fighting the battle.


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## motorway (25 May 2009)

Timmy said:


> Motorway - one question re this MOF chart please.
> 
> The volume histogram on the right hand side of your chart shows huge volume having built since about January between 16 and 22 cents (pic attached).  Has this volume build (and I assume it is transfer of ownership) contributed to your view here?





A significant thing to grasp is how different
Intrinsic Time is to clock time...

P&F is a historic name from a period in the 1930's

The earliest known name is a Fluctuation Chart..

Today it would be called an "Intrinsic Time" chart

 Volume has to be considered in terms of How fast Time is Flowing.
 When Boxes are forming slowly They will tend to fill up with volume
They become heavy  --> Great for forming bases ,not so great in ceilings..

When Time speeds up The Boxes have wings ... Differences of opinion are absent.... And there is no waiting for Volume

Volume is related to "populations of interest"

Speed = Velocity  ... This is the trend is your friend 

But the only thing we can say about it --- Is that it will end = opportunity

( something eg Soros and P&F chartists are looking for )

change of Velocity = acceleration

Here we have the building of potential
the swings have MAX acceleration at their end points

change of acceleration =  Jerk

This is the "Jump" 

It is what happens when you are on a fast old train that lurches into a sharp corner... it "HERALDS"....

*It is this Volume that matters
When the volume comes in and the Behaviour changes..*

When dealing with Intrinsic time  ... Distance ,velocity, acceleration, & Jerk
are very real parameters... Not the empty ROC or MOM or RSI or even OBV of static time.... 

large Volume = large population of interest

But it is change relative that matters and the result that ensues

Demand and Supply are the one thing
They tend to generate each other and destroy each other

To move from  static time to intrinsic time
--->*To a test response paradigm *is light years away from the overlaying of indicators built from clock time..

Take OBV If you can not think of two things wrong with it ( without trying )
You are like one wearing a blindfold .


A quick look at the OBV shows a bullish picture from the bottom of the reversal until about the 12Th may

But really effort has produced a poor result
I see upthrusts and Signs of weakness..

There are  large populations of interest ( interested in trading-- cash for shares.. shares for cash )..

Sellers have generated Buyers



A factor not discussed in the thread is the ( comparative ) changes in relative strength.... Important...  

Accumulation would
absorb  the volume
The chart will slow 
and start to rally  ( mid pattern )




> When demand has absorbed all the supply at any given
> price, it will begin to absorb the supply available at the next higher price at which
> offerings are available. As the demand increases, prices correspondingly
> increase.




Large Volume is always to be noted
Volume is always important
When there is change of ownership
from weak to strong
Then the technical position changes instantly
and what was Dear become Cheap

*But hard to buy *

motorway


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## motorway (30 May 2009)

A weak hand is also someone who is under water holding their breath
Who bought at the high and held on in shock as it tumbled down

How much changes when they stop holding breath ( a given )
and either reconcile to the new price range or sell out to someone
who now has a cost base below the current price (a Stronger Hand )

The Chart has swung back up making a higher low (The immediate trend is now up) coming off a halfway point

Right in the middle of the zone of massive volume

How much is the massive volume just a fact of the low price

The action from this low 
was very measured and manipulated

 Went for a walk up the stairs 

*But Why ? *


If there is Accumulation ( Manipulation ) ( or Distribution )

Support and Resistance 
will move forward at an angle
in a Dynamic Manner

The classic Angle of Manipulation is 45 degrees
and it is always present in some form


motorway


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## motorway (30 May 2009)

Here is the .02 chart

motorway


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## motorway (30 May 2009)

> A factor not discussed in the thread is the ( comparative ) changes in relative strength.... Important...




I know these trusts are held for Income  ( the Managers Maybe ?  )

And for Buy and Hold Types

So this intermediate CRS chart
could be a starting point

ZERO point is 21/11/08
and The % is compared to the XAO 

It has never pushed through Resistance
( Dynamically moving forward )

*EVER*

But There was a Significant Reversal from the ultimate LOW

Fundamentals that would matter
Are the Obvious ones

But esp the outlook for interest rates
Which have been falling 


motorway


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## Timmy (31 May 2009)

Thanks Motorway - wow that comparitive chart (post #33) - an income is nice but at what price?
Well, at the price of capital preservation/growth in this case ... that is a truly ugly chart!

Re the chart in post #32, the 0.02 chart - what do you think of the sideways move that
has broken the downtrend 45 degree line (in red).  If this chart was time-based. 
i.e. daily/weekly/whatever bars then the break of the down-sloping
trend line could be attributed to the simple passing of time but on the PF it is
attributable only to work being done - does this move give you any confidence
that accumulation is occuring?  I suppose I am asking also that if it does
signal to you that some sort of accumulation is occuring how much
confidence does the sideways move give you ...?


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## sagitar (31 May 2009)

JohnnyG - I think you've started an interesting thread. I just wanted to throw something out there to think about or for others to comment on if they like.  I think it's particularly important to note that when one looks at a chart over a medium-to-long term for a stock that has experienced a large shift in price over that time, you typically find that volume will be higher at lower prices. This is obviously due to the fact that the same amount of money traded at lower prices buys you more shares (hence, higher volumes).  

Now, if it was possible to plot the value of a trading day (as opposed to the volume of shares traded) perhaps that may provide a better unbiased indicator of accumulation/distribution. Anyone know if that can be done? 

Alternatively, how about keeping one's eye on several of the Money Flow indicators around to gauge the level of accumulation / distribution. There's also the smart money indicator that Nielson promotes although I haven't tried it myself - looks interesting though. 

Just my 2c worth...
Cheers


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## Timmy (1 June 2009)

sagitar said:


> Now, if it was possible to plot the value of a trading day (as opposed to the volume of shares traded) perhaps that may provide a better unbiased indicator of accumulation/distribution. Anyone know if that can be done?




Yes this could be done by most charting software packs that allow 'custom indicators' to be built, given the correct data.  Even just using EOD prices would give an approximation of the $ turnover.


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## johnnyg (3 June 2009)

Got some help from Radge's Forum and was able to get your idea coded up into an indicator sagitar.

As you can see although volumes picked up in the last 10-12 weeks (weekly view) weekly turnover has actually been falling off. In saying that it seems MOF's made a good move in the last 7 days.

Ill need to look into the idea a bit more and see if I can see any patterns/confluences as to whether or not its a worth while indicator.

I also need to have a good read threw Motorways post when I have a spare hour or so.


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## sagitar (4 June 2009)

Looks interesting JohnnyG - did you use a formula to derive the volume-related values? I suppose one could plot vwap x daily volume to derive an estimate of value traded per day.  If you find any interesting relationships I'd be keen to hear.
cheers


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## johnnyg (8 June 2009)

Here's another interesting chart I came across over the weekend.


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## beamstas (8 June 2009)

johnnyg said:


> Here's another interesting chart I came across over the weekend.




Johnny, if it's buyers then how can the closes be low on the bar?


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## johnnyg (8 June 2009)

Would you say there is a difference between absorbing and buying?


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## beamstas (8 June 2009)

johnnyg said:


> Would you say there is a difference between absorbing and buying?




Do you have Master the Markets? There is a good section on high volume bars with narrow spreads, and also on accumulation and distribution.

Im not saying you are wrong -- i just don't think high volume on any down move is exceptionally bullish.


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## johnnyg (8 June 2009)

I do, about 1/2 way threw it ATM. Ill have to have another read over those sections.

Discussion I find always to be useful. 

(I like your blog BTW, keep it up.)

John.


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## beamstas (8 June 2009)

johnnyg said:


> I do, about 1/2 way threw it ATM. Ill have to have another read over those sections.
> 
> Discussion I find always to be useful.
> 
> ...




Johnny - the stuff on accumulation is on page 20 under "market basics"
I don't think it mentions small ranging down bars with high volume so you could be right, i'll have a look through it later see if i can spot anything

brad


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## tech/a (8 June 2009)

johnnyg said:


> Would you say there is a difference between absorbing and buying?




Of course.
Absorption of buyers generally occurs at tops.
Absorption of sellers generally occurs at bottoms. 

Once complete one or the other are left to continue unabated.


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## johnnyg (8 June 2009)

From Master the Markets.



> The Selling Climax
> 
> Brief Definition: An imbalance of supply and demand causing a bear market to transform into a bull
> market.
> ...






> So, for a legitimate down-move you would need to witness
> evidence of selling, which would reveal itself as increased volume on down-bars (i.e. the present bar closes
> lower than the previous bar). _ If you see an increase in volume that is excessive, then you should be wary, as this may indicate that demand is in the background. _


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## johnnyg (8 June 2009)

tech/a said:


> Of course.
> Absorption of buyers generally occurs at tops.
> Absorption of sellers generally occurs at bottoms.
> 
> Once complete one or the other are left to continue unabated.




So do you think we have buyers absorbing (not buying) the selling pressure?


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## beamstas (8 June 2009)

johnnyg said:


> From Master the Markets.




Nice pick up johnny -

_The volume will be extremely high on down-moves_ - Yes
_accompanied by narrow spreads_ - Yes
_with the price entering fresh low ground _- kinda
_The only difference is that on the lows, just before the market begins to turn, the price will be seen to close in the middle or low of the bar_. - Yes

So it is saying there is demand?
Not sure if this is accumulation but it's interesting


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## johnnyg (8 June 2009)

Well its not saying so much that's there is demand, but to quote it from the book - 







> The following events will always occur when markets move from one major trending state to another




I guess when you think about it its pretty simply really. 

When you've got tight ranging down bars on high volume there has to be some sort of buying demand/absorbing there, otherwise you'd simply have a wide ranging down bar.


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## pavilion103 (27 October 2011)

When what appears to be an area of consolidation begins to form, what are some of the signs to determine whether this is re-accumulation before further rises or distribution and a likely change of trend. Or if it's neither.

What are the keys to look out for? 
I'm thinking with distribution there will be sharp increases in volume, with price struggling to rise (effort v result).


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## tech/a (27 October 2011)

Distribution or Accumulation isnt going to be seen in a bar or two.
You will see dumping and you will see strong buying in single bars.

Whether that then equates to Distribution will be seen at resistance levels where sellers flood the market at a price band.
Same will occur at Support levels if its accumulation.
Price will be seen as best value for buying or selling in a range where accumulation or Distribution occurs---we call this consolidation.
Being able to read consolidation* (Flat/Rising/Declining)* is important for those who trade for the longterm or indeed investors.

There are some very interesting ways of tipping the scales our way developed by some pretty clever guys. Marc Chaikin is just one.


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## tech/a (27 October 2011)

Distribution or Accumulation isnt going to be seen in a bar or two.
You will see dumping and you will see strong buying in single bars.

Whether that then equates to Distribution will be seen at resistance levels where sellers flood the market at a price band.
Same will occur at Support levels if its accumulation.
Price will be seen as best value for buying or selling in a range where accumulation or Distribution occurs---we call this consolidation.
Being able to read consolidation *(Flat/Rising/Declining) *is important for those who trade for the longterm or indeed investors.

There are some very interesting ways of tipping the scales our way developed by some pretty clever guys. Marc Chaikin is just one.


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## Garpal Gumnut (10 November 2022)

tech/a said:


> Distribution or Accumulation isnt going to be seen in a bar or two.
> You will see dumping and you will see strong buying in single bars.
> 
> Whether that then equates to Distribution will be seen at resistance levels where sellers flood the market at a price band.
> ...




For those new to charting a view of live charts in different time scales all the way from 1minute to 1 monthly is available for Bitcoin BTC via the link below. 

And it is free.

The window can be adjusted to block out the "noise" on the right hand size, and the adjustment for time scale is in the top left hand corner.  

With such a rapidly changing and volatile unit such as BTC with large hedge/crypto funds and small traders experiencing alternatively mania some years ago and the depths of depression recently, it is a good example of Distribution and Accumulation. 

May I suggest for beginners to work from monthly data back to weekly, then daily and then lower time scales.

If you read the tips from @tech/a and other skilled chartists in the comments above, it may enlighten you in your trading in stocks and other units of exchange which are charted, which you might be investing in or trading.

Compare their advice to the charts on the link.






						Bitcoin Price in USD | Real Time Bitcoin Chart | KITCO
					

The Kitco Bitcoin price index provides the latest Bitcoin price in US Dollars using an average from the world's leading exchanges.



					www.kitco.com
				




gg


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