Accumulation and Distribution

🧲 Accumulation and Distribution

Accumulation and Distribution patterns help identify zones where institutional players are building or unloading positions, often preceding significant moves.

⚙️ Pattern Settings

• Show Accumulation And Distribution: Toggle visibility

• Mode: Choose between:

  • Fast: Find smaller, more frequent pattern formations

  • Slow: Find larger, more significant patterns

• Color Settings: Customize colors for accumulation and distribution zones

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🧩 Pattern Types

• Accumulation Zones: Areas where smart money accumulates positions before upward moves

• Distribution Zones: Areas where smart money distributes (sells) positions before downward moves

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🛠️ Practical Application

Accumulation and Distribution zones provide valuable signals:

• Trend reversal prediction: Accumulation often precedes uptrends, distribution precedes downtrends

• Stop placement: Place stops beyond opposing zones

• Target setting: Use the height of patterns for potential price targets

• Trend confirmation: Aligned zones in multiple timeframes strengthen the signal