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Accumulation & Distribution



This is boring, but definitely worth 1 minute of your time.

Accumulation refers to a period of time during which traders are buying, while Distribution refers to a period of time during which traders are selling.

During accumulation, traders are typically buying an asset that they believe will increase in value over time. This buying pressure can cause the price of the asset to rise. Conversely, during distribution, traders are typically selling an asset that they believe will decrease in value over time. This selling pressure can cause the price of the asset to fall.

Accumulation and Distribution are often used in technical analysis to identify potential trends in the market. For example, if BTC is in a period of accumulation, it may be a signal that the price is likely to rise in the future. On the other hand, if BTC is in a period of distribution, it may be a signal that the price is likely to fall in the future. Traders use this information to make informed decisions about buying and selling securities. TradingView has some Accumulation and Distribution indicators to explore that may prove to be forward looking in combination with other technical analysis tools, such as volume indicators, trend lines, and moving averages. By understanding these concepts, traders can gain insights into the market sentiment and make informed trading decisions.


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