Accumulation vs. Distribution

How to spot big investors quietly buying (accumulation) or selling (distribution) by watching which days carry the heaviest volume.

Two sides of the same idea

Accumulation is a period when large investors are steadily building positions. Distribution is the opposite: large holders are steadily selling into the market. Neither shows up in a press release. It shows up in the pattern of price and volume over several weeks.

The basic tell is simple. During accumulation, up days tend to come on heavier volume than down days. During distribution, down days tend to carry the heavy volume while rallies are thin.

Illustration: in accumulation the green (up-day) bars are taller; in distribution the red (down-day) bars are taller.

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