Accumulation / Distribution

#1
TRADERJI,
I am always confused with the terminologies - accumulation & distribution .
Whenever it is said that the stock is being accumulated , then is it not true that the stock is also distributed at the same time by the sellers or vice versa. Many a times , charts indicate distibution when the prices are rising or acumulation when the prices are falling . So ,is it that the buyer is accumulating the stock & the seller is distributing , both the terms are applicable at the same time ? What is the best indiacator to judge these terms correctly ? Does volumes play a significant role here ? Your comments ,PLEASE .
 

Traderji

Super Moderator
#2
purvija99 said:
TRADERJI,
I am always confused with the terminologies - accumulation & distribution .
Whenever it is said that the stock is being accumulated , then is it not true that the stock is also distributed at the same time by the sellers or vice versa. Many a times , charts indicate distibution when the prices are rising or acumulation when the prices are falling . So ,is it that the buyer is accumulating the stock & the seller is distributing , both the terms are applicable at the same time ? What is the best indiacator to judge these terms correctly ? Does volumes play a significant role here ? Your comments ,PLEASE .
When there are more buyers than sellers on a particular stock then it is under accumulation, but when there are more sellers then buyers the stock is under distribution.

By studying price and volume one can tell if a stock is under accumulation or distribution.

When most of the volume is associated with upward price movement it is accumulation.

When most of the volume is associated with downward price movement it is discribution.
 

sh50

Active Member
#3
When you say most of the volume, is it increased volume or decreased volume. It can be confusing. Out of the four:-

Increasing Volume with an advance is Bullish

*Decreasing Volume with a decline is Bullish

*Increasing Volume with a decline is Bearish- PD

*Decreasing Volume with an advance is Bearish- ND


You have covered two. Kindly specify which - I think 1st and 3rd. 2 is accumulation and 4 th again is distribution, is it not? ALl bullish- accumulation and all bearish-distribution?
 
Last edited:
C

CreditViolet

Guest
#4
If its not accumulation or distribution then u can call it consolidation which are the cases u mentioned
 

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