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Accumulation

Market Phases Explained: Accumulation, Expansion, Distribution🔵 Market Phases Explained: Accumulation, Expansion, Distribution, Reset Difficulty: 🐳🐳🐳🐳🐋 (Advanced) Markets do not move randomly. They rotate through repeatable phases driven by liquidity, psychology, and participation. Understanding market phases helps traders stop forcing strategies and start trading in alignment with the current environment. 🔵 WHY MARKET PHASES MATTER Most traders struggle not because their strategy is bad, but because they apply it in the wrong market phase. Breakout strategies fail in accumulation Mean-reversion fails during expansion Trend-following fails in distribution Reversal trading fails before reset is complete Market phases explain when a strategy works, not just how . Price action, indicators, and volume behave differently in each phase. 🔵 THE FOUR MARKET PHASES Markets move in a repeating cycle: Accumulation Expansion Distribution Reset Each phase has unique characteristics, risks, and opportunities. 🔵 1. ACCUMULATION (QUIET POSITIONING) Accumulation occurs after a decline or prolonged sideways movement. This is where smart money builds positions quietly. Key characteristics: Price moves sideways in a range Volatility is low Breakouts frequently fail Volume is stable or slightly rising What is really happening: Large players accumulate positions without moving price too much. Liquidity is absorbed. Indicator behavior: RSI oscillates between 40 and 60 MACD hovers near the zero line Volume spikes are quickly absorbed Best strategies: Range trading Mean reversion Patience and preparation 🔵 2. EXPANSION (TREND DEVELOPMENT) Expansion begins when price breaks out of accumulation with conviction. This is where trends are born. Key characteristics: Strong directional movement Increasing volatility Pullbacks are shallow Breakouts follow through What is really happening: Accumulated positions are now leveraged. Momentum attracts participation. Indicator behavior: RSI holds trend zones (40–80 or 20–60) MACD expands away from zero Volume increases during impulse moves Best strategies: Trend-following Pullback entries Breakout continuation 🔵 3. DISTRIBUTION (QUIET EXITING) Distribution occurs after an extended trend. Price may still rise, but momentum starts to weaken. Key characteristics: Higher highs with weaker follow-through Increased wicks and failed breakouts Volatility becomes unstable Late buyers get trapped What is really happening: Smart money distributes positions to late participants while maintaining the illusion of strength. Indicator behavior: RSI diverges or fails to make new highs MACD histogram shows lower highs above zero Volume spikes near highs Best strategies: Profit protection Reduced position size Waiting for confirmation of weakness 🔵 4. RESET (LIQUIDITY CLEARING) Reset is when the previous trend fully unwinds. This phase clears excess leverage and weak hands. Key characteristics: Sharp moves against prior trend Stop-loss cascades Emotional price action High volatility without clear direction What is really happening: Leverage is flushed. Weak positions are forced out. Indicator behavior: RSI reaches extreme levels MACD crosses zero decisively Volume spikes dramatically Best strategies: Capital preservation Waiting for stabilization Avoiding prediction 🔵 HOW TO IDENTIFY THE CURRENT PHASE Ask these questions: Is price trending or ranging? Are breakouts succeeding or failing? Is momentum expanding or contracting? Are indicators confirming or diverging? No indicator works in all phases. Phase identification is the real edge. 🔵 COMMON MISTAKES Forcing trend strategies during accumulation Chasing breakouts during distribution Trading reversals before reset completes Ignoring momentum deterioration Most losses come from being right about direction but wrong about phase. 🔵 CONCLUSION Markets move in cycles because human behavior and liquidity move in cycles. Accumulation builds positions Expansion rewards patience Distribution traps late entries Reset clears the board When you learn to identify market phases, you stop fighting the market and start working with it. Which market phase do you find hardest to trade? Accumulation, expansion, distribution, or reset? Share your thoughts below.
Education
by BigBeluga
14
Anatomy of a Breakaway Gap & What Happens NextAMZN is an excellent example of a Breakaway gap due to improvement of the company's fundamentals. The prior fundamental level is clearly defined on the chart and easy to see. The new fundamental level has not yet been fully established and will begin to form over the next few weeks. Even if there is a Flash Crash, the fundamental lows of the previous level are very strong support. What to watch for in the stock price action over the next few weeks: 1. Dark Pool accumulation in the Buy Zone. 2. Pro Trader nudges. 3. Speculative trading by Smaller funds managers.
NASDAQ:AMZNEducation
by MarthaStokesCMT-TechniTrader
2
The Four Different Sideways TrendsIn the modern Market Structure, stocks, indexes and industry indexes move sideways or trend moving horizontally most of the time. Understanding this phenomenon and how to use it to your advantage is important to learn. There are 4 different types of price moving sideways: 1. The consolidation is a very narrow price range, often less than 5% but can be wider. The consolidation trend usually lasts a few days to a few weeks. The price action is very tight and small. Pro traders dominate consolidations usually. Price pings between a narrow price range low and high. Price is a penny spread or few pennies at most. This means the candlesticks are very very small and tightly compacted. Consolidations are relatively easy to identify on a stock chart. These pattern create a liquidity shift which an HFT AI algo discovers and triggers its automated orders to drive price up or down based on the positions the pro traders are holding. Consolidations create fast paced momentum and velocity runs that you can take advantage of IF you learn to enter the position BEFORE HFTs and then the smaller funds, retail day traders and gamblers drive price upward. You and pro traders ride the run until you see a Pro trader exit candle pattern to close the position. 2. The Platform Position sideways trend is also very precise with consistent highs and lows. These are the realm of the Dark Pools hidden accumulation and if you are trying to day trade a platform then it will whipsaw and cause losses. The width is too narrow for day trading. The platform is about 10% of the price in width. Platforms form after a market has had a correction and numerous stocks are building bottoms. Once the bottom completes and the Dark Pools recognize that the stock price is below fundamental levels the Dark Pool raise their buy zone price range to a new level. Often HFTs gap up a stock and then Dark Pools resume their hidden accumulation at that higher level. The goal is to enter just before the HFT gap up to the new fundamental level for swing or day trading. Platforms offer low risk and the position can be held for weeks or months generating excellent income with minimal time for busy trades who do not have the time to swing trade. Platforms are also good for swing traders if they time their entry correctly. 3. Sideways trends are a mix of retail investors and retail day traders, smaller funds managers and sometimes Dark Pools hidden within the wider sideways trend. These trends with the wider mix of market participants have inconsistent highs and lows which often times causes retail day traders losses as they do not understand the dynamics of the wide sideways trend. These sideways trends are more than 10% and as wide as 20% of the stock price. 4. The Trading Range is the hardest to trade and often causes the most losses as frequently the trading range is so wide it is not easily recognized on the daily charts but is visible and obvious on a weekly chart. The inconsistent highs and lows within the very wide trading range cause problems and losses for most day and swing retail traders. The size differential of each sideways trend tells you WHO is in control of price and how to trade it for maximum profits, lower risk, and to make trading fun rather than harder.
BCBA:SPYEducation
by MarthaStokesCMT-TechniTrader
1
Mastering the ICT Power of 3 concept - How to use it in trading!The financial markets often appear chaotic and unpredictable, but behind the scenes, institutional players operate with clear strategies that shape price action. One such strategy is the ICT (Inner Circle Trader) "Power of 3" model, a framework used to understand and anticipate market cycles through three key phases: accumulation, manipulation, and distribution. This guide will break down each of these phases in detail, explaining how smart money operates and how retail traders can align themselves with the true direction of the market.

 What will be discussed? - The 3 phases - Examples of the PO3 - How to trade the PO3 - Tips for trading the PO3 The 3 phases Accumulation 
 The Accumulation Phase in the ICT "Power of 3" model refers to the initial stage of a market cycle where institutional or "smart money" participants quietly build their positions. During this time, price typically moves sideways within a tight range, often showing little to no clear direction. This is intentional. The market appears quiet or indecisive, which is designed to confuse retail traders and keep them out of alignment with the real intentions of the market's larger players. In this phase, smart money is not looking to move the market dramatically. Instead, they are focused on accumulating long or short positions without drawing attention. They do this by keeping price contained within a consolidation zone. The idea is to gather enough liquidity, often from unsuspecting retail traders entering early breakout trades or trying to trade the range, before making a more aggressive move. Manipulation The Manipulation Phase in the ICT "Power of 3" model is the second stage that follows accumulation. This phase is where smart money deliberately moves the market in the opposite direction of their intended move to trigger retail stop losses, induce emotional decisions, and create liquidity. After price has consolidated during accumulation, many retail traders are either already positioned or have orders waiting just outside the range, either stop losses from those trading the range or breakout orders from those anticipating a directional move. The manipulation phase exploits this positioning. Price will often break out of the accumulation range in one direction, appearing to confirm a new trend. This move is designed to look convincing, it might even come with a spike in volume or momentum to draw traders in. However, this breakout is a false move. It doesn’t represent the true intention of smart money. Instead, it's meant to sweep liquidity, triggering stop losses above or below the range, and then reverse sharply. This stop run provides the liquidity needed for large players to finalize their positions at optimal prices. Once enough liquidity is collected, and retail traders are caught offside, the real move begins. Distribution The Distribution Phase in the ICT "Power of 3" model is the final stage of the cycle, following accumulation and manipulation. This is where the true intention of smart money is revealed, and the market makes a sustained, directional move, either bullish or bearish. Unlike the earlier phases, distribution is marked by clear price expansion, increased volatility, and decisive momentum. After smart money has accumulated positions and shaken out retail traders through manipulation, they have the liquidity and positioning needed to drive the market in their desired direction. The distribution phase is where these positions are "distributed" into the broader market, meaning, institutions begin to offload their positions into the retail flow that is now chasing the move. Retail traders, seeing the strong trend, often jump in late, providing the liquidity for smart money to exit profitably. This phase is typically what retail traders perceive as the real trend, and in a sense, it is. However, by the time the trend is obvious, smart money has already entered during accumulation and profited from the manipulation. What appears to be a breakout or trend continuation to most retail participants is actually the final leg of the smart money’s strategy. They are now unloading their positions while price continues to expand. Examples of the Power of 3 How to trade the PO3? Start by identifying a clear accumulation range. This typically happens during the Asian session or the early part of the London session. Price moves sideways, forming a consolidation zone. Your job here isn’t to trade, but to observe. Draw horizontal lines marking the high and low of the range. These become your key liquidity zones. Next, anticipate the manipulation phase, which usually occurs during the London session or at the NY open. Price will often break out of the range, triggering stop losses above the high or below the low of the accumulation zone. This move is deceptive, it is not the real trend. Do not chase it. Instead, wait for signs of rejection, such as a sharp reversal after the liquidity grab, imbalance filling, or a shift in market structure on a lower timeframe (like a 1- or 5-minute chart). Once manipulation has swept liquidity and price starts showing signs of reversing back inside the range or beyond, you now look for a confirmation of the true move, this begins the distribution phase. You enter in the direction opposite of the manipulation move, ideally once price breaks a structure level confirming that smart money has taken control. For example, if price consolidates overnight, fakes a move to the downside (running sell stops), and then quickly reverses and breaks above a key swing high, that's your signal that the true move is likely up. Enter after the break and retest of structure, using a tight stop loss below the recent low. Your target should be based on liquidity pools, fair value gaps, or higher-timeframe imbalances. The key to trading the Power of 3 is patience and precision. You're not trying to catch every move, but to wait for the market to complete its cycle of deception and then ride the clean expansion. Ideally, your entry comes just after manipulation, and you hold through the distribution/expansion phase, taking partials at key liquidity levels along the way. Tips for trading the PO3
 1. Learn price movements Before you can effectively apply the ICT Power of 3 strategy, it’s crucial to have a deep understanding of how price behaves. This means being comfortable identifying market structure, recognizing trend direction, and interpreting candlestick dynamics. Since the Power of 3 is deeply rooted in how price moves in real time, a strong grasp of these basics will give you the confidence to read the market correctly as each phase develops. 2. Analyse multiple timeframes Although the Power of 3 pattern shows up on lower timeframes, relying on just one can lead to misreads. You’ll gain a clearer picture when you align the short-term view with higher timeframe structure. For example, what appears to be accumulation on the 15-minute chart may simply be a retracement in a larger trend on the 1-hour or daily. By examining multiple timeframes together, you can better identify the true setup and avoid being tricked by noise. 3. Exercise patience A key part of trading the Power of 3 is knowing when to act, and more importantly, when not to. It’s easy to get impatient during the accumulation or manipulation phases, but entering too early often leads to frustration or losses. True discipline comes from waiting for the expansion or distribution phase, when the market reveals its real direction. This is where the most favorable risk-to-reward setups occur. Thanks for your support. - Make sure to follow me so you don't miss out on the next analysis! - Drop a like and leave a comment!
Education
by Youriverse
64
Ranging? Not Really. The Big Guys’ Plan Is Already Set…Ever wondered what the crowd is really doing behind the candles? This video breaks down how to read Cumulative Volume Delta (CVD)— from retail behavior to sentiment charts, and why the market doesn’t always follow logic. ✅ When price moves one way but the crowd trades the other... ✅ When sideways markets aren’t as neutral as they look... ✅ When emotions take over—and how to spot it in advance. We’re lifting the hood. The engine’s running. Let’s see what drives it.
TRADENATION:XAUUSDEducation
by supremum_ar
What happens if you give a TikTok trader a billion dollars?In this video, I covered the topic of accumulation and distribution of large positions. I explained why big market players prefer using limit orders when building and offloading their positions. I also talked about how retail traders — who I often call TikTok traders — tend to rely on market orders, and why the price is more likely to move against the masses of TikTok traders. Understanding this is crucial when analyzing what’s really going on "under the hood" of the market. I’ll dive deeper into this in my upcoming posts. So don’t miss out! Subscribe!
Education
by supremum_ar
2
ETH | Alternative Chart Pattern | EducationJust a short update for my latest C&H post Price is also forming an Ascending Triangle pattern with a liquidity zone of $2,800 - $3,000 for an average spot for buyer to step in When trading chart patterns it's best to figure out how to jump in before the breakout similarly to the last touches highlighted in blue on the bottom trendline You can see that price was forming a bottom-like pattern or what I also like to call price accumulation and then vice versa for the tops.
BITSTAMP:ETHUSDEducation
by Nathanl19
HOW-TO: Accumulation Strategy 2024What if instead of buying a stock, crypto, currency only once and holding until we are in profit, we split our strategy capital and buy several times, until the total is in profit ? Yes, that is DCA you’d say. Ok, but what if instead of buying at predetermined intervals, we bought at oversold RSI, or on a double bottom, for example ? That’s the idea behind the Accumulation Strategy, which I’m going to explain in detail in this article. █  Simple Example The strategy comes with several features, and the easiest way to explain them is through examples. The Max Active Deals input allows to limit how many times the strategy can trigger a buy in a trade, just like the pyramiding setting. It can go up to 100. In this example, the strategy has 10 max active deals. and is using the RSI feature to buy when RSI crosses below a configurable threshold, here 25. Note: to get stronger signals, the RSI time frame has been set to 1 hour, since the chart is in a 30 min time frame. In this trade, the strategy bought 8 times (yellow arrows) before selling at take profit, but it could have bought twice more. █  Take Profit Feature Customisable in the input tab, this feature allows you to set one or multiple take profit(s). You can set the value in either %, pips, or Auto mode. To create multiple targets, increase the Number of take profit and set the Step between each TP. In our previous example, instead of just one, I set 3 TPs with 1% value and a step of 1. The strategy will sell progressively at a quantity split even at each take profit, until the last TP is hit. Note: Using multiple take profit is often used to improve risk management in trading. █  Built-in Entry Options The strategy comes with several built-in indicators, such as the RSI that we’ve seen, but here’s the list: MTF RSI cross, RSI divergences MTF Stochastic cross MTF Bollinger Bands cross Top & Bottoms Double Top & bottoms Higher/Lower Lows/Highs Custom External Entries If you want to use ANY external indicator from the TradingView library and use it as an entry signal, you can! For example, let’s use the Squeeze Momentum Indicator by Lazybear. After adding it to the chart, we select the first plot which is the histogram. Then we select the condition “crossover” and “0”. It will create a buy when the histogram turns green. █  Trend Filters In trading, we try to avoid going against the global trend. The strategy comes with several built-in trendlines, MTF, or you can use ANY external trendline from the TV library. The strategy offers other built-in filters such as volume, overbought in range/trending market, or flat market entry filters. █  Stop Loss The stop loss can be turned on/off. You can set the value in either %, pips, ATR or Auto mode. Note: When to use a Stop Loss? Using a stop kind of defeats the purpose of the strategy, but it can be useful if you plan to trade highly volatile and risky coins (remember LUNA ?) That is why the option is there. █  How to use the strategy The indicator access is unlocked by subscribing on my website. See the links below this article. █  Setting up a strategy You can set up a strategy on your own chart in just one click using the preconfigured charts I will share below, or you can simply add the indicator yourself and play with the settings. Backtesting Backtesting is automatically done in the Strategy Tester Tab. Creating Alerts Once you have your strategy setup on the chart: 1 - Set the alert message in the indicator inputs (scroll to the bottom, you will find an “alert’ section) 2 - Save your chart and do not touch it anymore unless you want to update your alert (optional but recommended) 3 - Create an alert on Cyatophilum Accumulation Strategy, using the option “alert() function calls only” (this is really important!) Only one alert is needed to handle all the strategy events! (entry, take profit, stop loss, etc.) Even a free TradingView user can create a strategy! Automation The subscription that I offer also comes with Automation bots using the Binance spot trading API . Important: if you wish to automate your strategies, make sure your TradingView account has access to alert webhook notifications . That’s it for this tutorial! Pretty easy right? No, I know it can get complicated at first. 😣 That is why I make preconfigured charts. Once you have access, click on the chart link, then click “copy”, then “save” your “layout” to get your own chart that you can use and edit. Enjoy! █  Preconfigured charts BTC/USDT Chart: www.tradingview.com ETH/USDT Chart: www.tradingview.com BNB/USDT Chart: www.tradingview.com MATIC/USDT Chart: www.tradingview.com EGLD/USDT Chart: www.tradingview.com
Education
by cyatophilum
Solana - Wyckoff Mark Up ExampleSolana vs. Wyckoff Logic SOLUSD example of mark up in the Wyckoff logic schematic. If unfamilar, there are market phases according to Wyckoff Logic: Accumulation: The phase where the market stops falling and begins to form a base, suggesting that demand is starting to overcome supply. It is characterized by a selling climax, where the price falls sharply, and the volume is high, indicating panic selling. After the climax, there is typically a phase of sideways movement, with occasional tests of the lows. This phase is labeled as the cause, setting up for a new upward trend (effect). Markup: After accumulation, the price starts to rise, signifying that the market is entering the markup phase. This phase is indicated by a rise in price away from the accumulation zone, often with increasing volume, which is interpreted as the start of a new uptrend. Distribution: This is the phase where the market tops out and is characterized by a buying climax. Supply begins to overcome demand as the "smart money" starts to distribute their holdings to the market. The distribution phase is also labeled as the cause for the subsequent downtrend. Markdown: Following distribution, the market enters the markdown phase where prices start to fall consistently. This phase is shown by a break of support levels with increasing volume, indicating a strong presence of selling pressure. The image also depicts the concept of "Volume" with a histogram at the bottom. The volume bars are colored in red and blue, generally indicating selling and buying volume, respectively. The histogram helps traders identify moments of high or low volume, which can be a sign of the strength or weakness of a particular price movement. Wyckoff's analysis technique is grounded in the study of price action, volume, and time, as they relate to supply and demand. It is a tool for understanding the market's structure and potentially predicting future price movements by identifying the actions of large institutional traders and investors.
COINBASE:SOLUSDEducation
by kingthies
Overview of accumulation breakout patternsWelcome to my new educational post As you can see in BCH/USDT chart, One weekly green candle is enough to overcome 1 year of bear/consolidation zone !! If you are surprised, let me tell you this is very normal behavior in crypto market as we saw this happened many times before Another example : DOGE / USD When to expect a coin to explode like that ? The accumulation pattern have many stages 1- After a period of bear market starts to deccelerate the price action becomes flat and usually take long time of horizontal accumulation between main supply and main demand (weeks / months / years ) 2- Multiple fakeouts can happen to make both buyers and sellers exhausted *The best buy (smart money) after the price reclaim the main demand after stoploss taken the second best buy after valid breakout (candle closing) The shorting is the vice-versa 3 - Finally the strong breakout take place and overcome many weeks / months or even years of bear / consolidation/ accumulation zone 4- After the coin make breakout many traders will avoid it in the early breakout but it will continue rise and rise ..and every time it rises more it becomes more risky Later it will turn to be crowded coin and many newcomers buy it at very high prices at this stage it becomes a gamble and MM will sell their profits on newbies Note : The distribution phase is the opposite of accumulation phase Note : not all coins can survive bear market, So the fundamental view has great role to support the coin I can tell you about potential coins in accumulation now which have chance to do similar thing : #FTT - #DYDX DO you know another potential coins in accumulation ? Tell me in comment section below ⬇️
Education
by Babenski
49
How to Use the Accumulation/Distribution IndicatorLearning how to identify accumulation and distribution in an asset is an important skill to have for any trader. Luckily, there’s a handy tool we can use: the aptly-named Accumulation/Distribution indicator. In this article, we’ll show you how this accumulation/distribution indicator works, where it’s best applied, and how you can combine it with other tools to boost your odds of success. What Is the Accumulation/Distribution Indicator? The accumulation/distribution indicator, also called the accumulation/distribution index, accumulation/distribution line, and abbreviated to A/D, is a cumulative indicator that uses price and volume data to measure the strength of an asset’s trend. It helps traders identify buying and selling pressure in the market and can show whether an asset is likely to continue trending or is due for a reversal. It was created by renowned trader Marc Chaikin, who also developed the famous Chaikin Money Flow indicator. Accumulation vs Distribution Accumulation occurs when buying pressure outweighs selling pressure, resulting in price appreciation. Conversely, distribution is where sellers have the upper hand over buyers, creating downward momentum. In practice, the plotted A/D line will move up when accumulation is present and down when distribution occurs. Accumulation/Distribution Oscillator Formula and Components The ADI seeks to quantify an asset's buying and selling pressure by considering its trading range and trading volume. First, it calculates the Money Flow Multiplier (MFM) using the following formula: MFM= ((Close−Low)−(High−Close)) / High−Low This results in a reading between -1 and 1. When the price closes in the upper half of its high-low range, the MFM will be positive. If it closes in the lower half, then MFM will be negative. In other words, if buying pressure is strong, the MFM will rise, and vice versa. Second, it generates the Money Flow Volume (MFV) with the following: Money Flow Volume = MFM × Volume For the first candle in a given chart, the MFV is the first A/D value. Since the indicator is cumulative, the MFV is added to the previous A/D value. In essence: First Calculation = (ADI = MFV) Subsequent Calculations = (ADI + MFV) This then creates the A/D line. While it may seem unnecessary to know the formula, it can provide us with significant insight into how an accumulation/distribution rating is given. For example, a strong bullish trend may cause an asset to close high in its trading range, producing an MFM reading close to 1. If this is backed up by high volume, the A/D line will surge upward. However, if the volume is lacking, then the A/D may only increase slightly. Thankfully, we don’t need to perform this calculation ourselves. With the free TickTrader platform we offer at FXOpen, you’ll find the accumulation/distribution indicator and dozens of other tools ready to help you navigate the markets. How to Use the Accumulation Distribution Indicator There are three popular ways to use the A/D indicator: identifying reversals, trend confirmation, and trading breakouts. Identifying Reversals One of the most effective uses of A/D is to spot potential reversals using divergences between the price and the A/D line. A bullish divergence occurs when the price falls, making lower lows, while the A/D line trends upward, creating higher lows. Conversely, a bearish divergence can be seen when an asset makes new highs, but the A/D puts in lower highs. It essentially shows us that while the price is moving in a specific direction, the underlying pressure supporting the move is waning. The example above demonstrates that fewer sellers are participating as the trend progresses lower; eventually, buyers take over and push the price much higher. Trend Confirmation A/D line can also be used to confirm the direction of a trend. In this context, traders monitor the alignment of the line with the price action. In an uptrend, both the price and A/D should be rising. If the A/D moves in the same direction as the price, it confirms the strength of the uptrend and suggests that the buying pressure is likely to continue. As in the chart, traders could have used the A/D and price alignment to position themselves in the direction of the bull trend. Similarly, during a downtrend, the price and the A/D should be falling. If the A/D is falling alongside the price, it indicates that the selling pressure is strong, and the downtrend is likely to persist. Trading Breakouts Lastly, A/D can help traders confirm breakouts beyond support/resistance levels. If there’s a critical level that a trader is watching to jump in on the breakout, a breakout beyond a similar level in the A/D indicator can signal the start of a new trend. In the example, we see a strong resistance level, both in price and the accumulation distribution chart. As the move is confirmed by A/D, breaking out above both dashed lines, traders have confidence that the price is ready to move higher. Integrating the Accumulation and Distribution Indicator with Other Tools While the A/D indicator is a valuable tool on its own, it’s best to use it in combination with other indicators to help filter out false signals and improve the accuracy of your predictions. Let’s take a look at two indicators to integrate with A/D: moving averages and the Relative Strength Index (RSI). Moving Averages Moving averages are a popular tool used by many traders to determine the direction of a trend, especially when two moving averages cross over. As mentioned, the trajectory of the A/D line can show traders that a trend is supported by volume; similarly, a price sitting above or below a moving average can indicate a trend’s direction. Using the two together can provide an at-a-glance reading of a trend, which can be extremely useful for trend-following traders. In this example, we’ve used the Exponential Moving Average (EMA) cross indicator in TickTrader, with two 20-period and 50-period EMAs. The fast EMA crosses above the slow EMA, showing that a potential bullish trend is forming. The price continues to stay well above the 50-period EMA as time progresses, demonstrating that there’s a strong bull trend. We also have confirmation from the A/D line that the bullish momentum is backed up by supporting volume. Seeing this, traders can be confident that the trend will continue. When the EMAs cross over bearishly, as seen on the right-hand side, traders may start looking for the A/D line to confirm that a bearish trend has started and exit their position. RSI Similar to the A/D indicator, RSI can be used to both spot divergences and confirm trends. The divergences are the same as A/D; a lower low in a price with a higher low in the RSI indicates a potential bullish reversal, while a price making a higher high and a lower low in RSI is regarded as bearish. Meanwhile, an RSI reading above 50 is typically seen as bullish, while below is bearish. Using the two indicators together can offer traders extra confluence that the market is headed in a particular direction. In the chart shown, we can see that the price is making a lower low. However, the Apple stock’s accumulation/distribution line shows a bullish divergence, as does the RSI. Traders could have marked the most recent area of resistance (dashed line), and then waited for the price to break out above it before looking for an entry. This move was confirmed by the RSI moving above 50, showing that bullish momentum is truly entering the market and offering multiple factors of confluence. What to Do Next You now have a comprehensive understanding of the accumulation/distribution indicator, including its formulation, its three main uses, and how to combine it with other indicators for extra confirmation. Ready to put your newfound knowledge to the test? You can open an FXOpen account to apply what you’ve learned and hone your trading skills across a diverse range of markets, from forex and commodities to stocks and indices. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
3
📈How to Day Trade with Trend: Accumulation📍The accumulation stage in trading refers to a period when market participants are accumulating a particular asset, typically with the expectation of a future price increase. During this phase, the price of the asset tends to range between two significant levels known as support and resistance. Traders closely observe these price levels as they provide valuable insights into the potential direction of the upcoming breakout. 📍Support and resistance levels are psychological and technical barriers that the price of an asset tends to respect. 🔹Support represents a price level where buying pressure is expected to outweigh selling pressure, causing the price to "bounce" or reverse its downward movement. 🔹Resistance represents a price level where selling pressure is expected to exceed buying pressure, causing the price to reverse its upward movement. 📍During the accumulation stage, the price of the asset oscillates within a range defined by these support and resistance levels. Market participants who believe in the potential upside of the asset accumulate it by buying at or near the support level. As the price approaches the resistance level, some traders start to take profits or sell their holdings, creating selling pressure that prevents the price from advancing further. This creates a cyclical pattern of price movement between the support and resistance levels, resulting in a range-bound market. It's important to note that the accumulation stage and subsequent breakout are not always easy to predict. False breakouts, where the price briefly moves beyond a support or resistance level but quickly reverse 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
Uncovering Wyckoff Accumulation Secret PatternWyckoff Accumulation & Distribution is a trading strategy that was developed by Richard Wyckoff in the early 1900s. It is based on the premise that markets move in cycles and that traders may recognize and use these cycles. In accumulation phase Wyckoff strategy involves identifying a Trading Range where buyers are accumulating shares of a stock before it moves higher. This allows traders to enter into positions at lower prices and benefit from the eventual price increase. Wyckoff Accumulation is an effective way for traders and investors to gain on market movements and make profits from their trades. The Wyckoff Trading Ranges feature a chart pattern called Descending Wedge. This pattern involves two trendlines, one falling and one rising, which converge to form a wedge shape. This pattern indicates that the price of an asset is likely to break out in the direction of the falling trendline. In my understanding, "Continuous Weakness" means a shift away from selling towards buying. Sellers fail to hold the pressure, so buyers take the lead leading in D,E: MARKUP phases. Kind regards Artem Shevelev Please check out my older Education Ideas Consider put like and follow my page for more updates)
BITSTAMP:BTCUSDEducation
by ArtemFuturesTrading
3
📊 Four Market PhasesThe four market phases in trading are characterized by different levels of buying and selling activity, trading volumes, news and sentiment, and price trends. By understanding these phases, traders and investors can better anticipate market movements and position themselves to take advantage of opportunities as they arise. 🔹 Accumulation In this phase, the market is characterized by low trading volumes and a lack of clear price trend. Buyers and sellers are more or less balanced, and prices tend to remain within a certain range. This phase is often seen as a period of accumulation by smart money investors who are slowly building up positions before the market begins to trend. 🔹 Uptrend In this phase, the market experiences a sustained rise in prices, driven by increasing demand from buyers. This is typically accompanied by higher trading volumes and positive news and sentiment. Traders may look to buy into dips during this phase, in order to take advantage of the overall trend. 🔹 Distribution In this phase, the market begins to show signs of weakness, with prices starting to trend sideways or even decline. This is typically accompanied by lower trading volumes and negative news and sentiment. Smart money investors may begin to sell into strength during this phase, as they look to lock in profits before the market turns lower. 🔹 Downtrend In this phase, the market experiences a sustained decline in prices, driven by increasing supply from sellers. This is typically accompanied by lower trading volumes and negative news and sentiment. Traders may look to sell into rallies during this phase, in order to take advantage of the overall trend. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
1
How to Study Price and Wave volume RelationshipHi 👋 In this post I would try to throw some light on the Price & Wave Volume relationship (popularized by late David Weis). This method may help trades in two ways: 1️⃣Ride the trend 2️⃣Picking the end of a rally I came across this chart randomly and found that there are a few principles that I can discuss with the help of this chart. Before reading any further I want to disclose that this technique was not originally developed by me. However, different authors may have different interpretations when it comes to some techniques of discretionary trading. This is a small piece of what I have learnt as a big follower of price action trading. I don’t want to go for bar by bar analysis here due to time and space constraints, so I have marked a few important places (as numbers in green rectangles) that are important and need to be discussed. The numbers in white are the cumulative wave volume in crores. This means just keep on adding the volume of each up bar until there is a reversal. I have taken the reversal a 2points on closing basis. Which means I keep on adding the volume until the price closes 2points below the close of the previous bar. The opposite is true for down waves. 🚀Point1 If you look at the upwave preceding the downwave at point1, it is the sharpest of the rallies from March 2020 lows (scroll back the chart a bit). Also wave volume is the highest (37cr) compared to 10,19 and 18cr on previous upwaves. At point 1 there is 10cr volume on the downwave, which is the highest on any downwave in the rally from Mar2020 lows. This is an alarming signal that sellers are getting active. But this may not impress us to liquidate our trades as we need further evidence to confirm this weakness. 🚀Point2 Here we have very high volume accompanied by the widest bar (in the rally) but closing in the middle. These three things confirm here that sellers have stepped in and the stock is weakening. 🚀Point3 There is a rally back to the highs but this time with lesser volume (29cr compared to 37cr) than preceding rallies. This is our second confirmation that buyers are turning there back at this level, at least for now. This is a sure exit opportunity for investors who bought at the lows. 🚀Point4 There was a sharp reaction with huge volume of 31cr and very wide bar, closing off of its lows. At this point there is still confusion that the trend has reversed or not. If it was a reversal then there would have been a follow through of 31cr volume on the downside but it is not so. For the next 3 days price sustained above the low of this wide downbar. 🚀Point5 The sellers again tried to push to the stock down but look at the volume in this wave. Are you getting it now? Its just 13cr instead of 31cr on the last downwave. This infers here that seller are not interested. So if seller are not interested then what will happen? Buyers will take over. 🚀Point6 The sellers tested the level of 1, 4 and 5 a few more times, buyers holds it and that develops a support. There was a very strong rally (compared to rallies in the last one year) back to the highs and volume is again 23cr which is lesser than volume at previous highs. Lesser volume could have 2 interpretations – there are less sellers this time and/or buyers are not interested. 🚀Point7 The stock is back to the support again. But volume on downwaves is much lesser in relative terms. In fact, it decreasing from 13 to 4 and then 2cr (see chart). Where have the sellers gone? They don’t want to sell at the support. 🚀Point8 Lack of selling leads to buying and eventually to new highs. Notice that there in very less volume at point 8 (only 4cr). This time sellers attempt (5cr) was failed quickly (without hitting support) and new highs were made outside resistance (developed at 2, 3 and 6). At this stage, when the price is closing outside the resistance, I would expect more volume to come in. More volume at this stage would indicate that buyers are interested but that is not the case here. 🚀Point9 Point 8 looked like a failed breakout attempt. The price fell back into the trading range (between support and resistance ). If I look at volume here, it is 15cr on this downwave. In the immediately preceding fall with 17cr it touched the bottom end of the range but this time with 15cr it is just at the middle of the range. This signifies re-accumulation at point 9. 🚀Point10 Re-accumulation lead to a rally back into resistance. We have 13cr as of now. Its too early to say, before this upwave ends, but 13cr is less (for me at this point) to push it any further. It seems holding back in the range. 🚀🚀Final thoughts This is a very nice and rare example showing both distribution (by the seller at resistance level ) and accumulation (by the buyers at support level ). Normally the price peeps outside the range on both sides and fails to follow through, until there is a decisive break on either side. I hope you learnt something new in this post. Now you can do one thing, press 🚀 to encourage me to write more educational stuff. Thanks for reading.
NSE:ADANIPORTSEducation
by Bravetotrade
TRADE FROM ACCUMULATION ZONESHello everyone! Today I want to analyze a very useful topic - how to trade from accumulation zones . Accumulation Surely you have noticed that the price first makes an impulse, then stops, after which it makes an impulse again. This is the simplest scheme of price movement. Each stage can be disassembled and a good trader should be able to trade at each stage. Accumulation is the stage at which the price moves sideways, that is, accumulates. This stage exists due to the fact that the price cannot constantly move up or down, there are moments when the strength of sellers or buyers ends and you need to take a break, gain a new position and push the price. Trading is possible inside the accumulation, but using a different technique, today we will discuss how to trade when the price has left the accumulation zone. beginning First , you should note the resistance and support levels between which the price moves in the accumulation zone. They are usually easy to identify. If you can't identify them, don't trade, wait for a situation that will be clear to you. Exit At the moment when the price goes beyond the accumulation limits, we start looking for an entry point. Most often, if the price has broken through the accumulation zone down, the price will continue to go down. But there are times when the price makes a false breakout and goes in the other direction. Such moments occur and you should not forget about them. It is impossible to always know where the price will go. If the price has broken through the zone down, you can go straight into the short - it will be an aggressive entry. It is aggressive because there is a possibility that this is a false breakdown and the price will go further up. A conservative entry will be when the price rolls back to the zone and begins a reversal from it. A reversal means that the price cannot go higher back into the zone and will fall down. Similarly, long trades are opened only in the other direction. As you can see on the chart, accumulation zones appear not only during the reversal, but also during the continuation of the trend. In situations where the price after the accumulation zone went further towards the previous trend, it means that the trend is strong enough, although there was resistance on the other side. Positions are always opened the same way: 1. Identify the area of the field. 2. Waiting for the breakdown. 3. Looking for an entry point (aggressive entry or conservative). This technique is very simple and it works quite well . The main thing is to follow the rules and don't risk too much. In addition, the direction on the higher timeframe is important. And don't forget the most important rule: the trend is your friend . Thanks! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
11
Relationship Between BTC.D and BTC price and Altcoin priceshello friends today i want to tell you how can you peredict altcoins behavaior according to the bitcoin price and bitcoin dominance. so come with me to say you how it works: liek you can see in below chart : if BTC price increase and BTC .D( Bitcoin Dominance) increase too ====> Altcoins price decreases. if BTC price decrease and BTC .D increase ====> Altcoins price Dump and decrase heavy.this is dump phase. if BTC price go sidewalk(without up or down) and BTC .D increase ====>Altcoins price dont change and this is accumulation phase. if BTC price increase and BTC .D decrease ====> Altcoins price increase quickly and this is altseason. if BTC price decrease and BTC .D decrase too ====> Altcoins prices go sideways. if BTC price go sidewalk and BTC .D decrease ====> Altcoins prices increase. hope this article be useful for you. please support me for more useful subjects. thanks friends.
CRYPTOCAP:BTC.DEducation
by TraderAmin-KZ
Dark Pool Buy Zones™Some traders try to watch Level 2 data to discern when the large-lot orders come through to get an idea of when the big institutions are accumulating in the Dark Pools, but you really don’t need that. Plus, whether that’s accurate is questionable since Dark Pool transactions are reported way after they were transacted. “Dark Pool buy zones” is a term I coined because Dark Pools use precise controlled orders that trigger automatically over extended periods of time. Since the Buy Side Institutions using the Dark Pools are primarily buying for the long term, price can sometimes drop down before moving up, creating a range in the price action, what I call “the buy zone.” When you learn to recognize the Dark Pool Candlestick and Indicator Patterns, you can be ready for the bottom to develop and look for Dark Pool accumulation patterns to plan your trading. Below is an example. Ford is still falling, but the Dark Pool buy zone support is close. I’ll be waiting to see how the bottom develops around that level before making my decision to trade. Happy TechniTrading! Please like and follow if you found this interesting.
NYSE:FEducation
by MarthaStokesCMT-TechniTrader
1
HOW-TO: Accumulation StrategyIn this idea I will make an in-depth tutorial on how to use the Accumulation Strategy and how to automate it. █ PRESENTATION The strategy is in the form of an invite-only script providing backtesting and alerts. Here is a link to the script page: Goals  • Steady profits. Smalls profits over time and no drawdown as long as you don't sell in loss.  • Peace of mind. It is meant to be a "set it up once and let it run for a while" automated strategy.  • No loss. Never sell in loss. Drawbacks  • Small profits. No leverage, just spot trading.  • Lengthy trades. Trades can take up to several days or even weeks in worst case scenario. We will see how to avoid that. Strategy  • Use volatility. Take advantage of small waves in the market.  • Buy the dips. Use a combination of technical indicators to buy bottoms or oversold prices.  • Accumulation. Buy small amounts several times as price moves to better position yourself.  • Take profit from total volume. Sell everything once price is in profit at the configured percentage value. █ BACKTESTING Backtesting is the process of creating a strategy. Finding a good pair  • By Market Cap. Take a category you are comfortable with (DeFi, Metaverse, DAO, etc) then look at coins in the top 10 market cap.  • Volatility. The more volatile the coin is, the better.  • Ascending/Sideways trend. This is where the strategy will work the best. We will see just below how to filter off bear markets.  • Pick a timeframe. Usually from 5m to 30m, can be higher or lower. I look at the average bar, I like something around 0.5-1% bar height, the chart should not have too much noise, otherwise go higher timeframe. Though not too high, since we want to take advantage of the volatility. Build your entries You first have to create "entries" that will then end up being a buy signal, after passing through some optional filters.  • Entry settings    • Go Long/Go Short     The indicator allows to trade both sides of the market. In these examples, I will only go long-only for simplicity.    • Max active deals     This is the maximum consecutive buy signals allowed for the strategy. Example with 10: the strategy will buy up to 10 times until take profit is hit.    • Minimum bar delay between deals     Puts a minimum delay between each entry signal, in bars.    • Minimum price difference in % between deals     Sets a minimum price percentage between each entry signal. Leave at 0 to disable.  • STOCH & RSI entries   Creates entries when the RSI or STOCH crosses below a configurable value. The length and resolution of the oscillators are configurable.  • Other entries   Signals using some of my other custom indicators are BUILT-IN:    • Top & Bottoms    • Higher lows, Lower lows    • RSI Divergences Entries are combined using a OR logical gate. I usually go with RSI and STOCH entries on higher timeframe using the resolution input, then add Top & Bottoms or Higher lows if I feel like it needs more entries. Once you have chosen a combination of entries, let's move on to the filters.  • Trend Filter   You can pick a trendline from a list, usually a simple EMA 200 will do the trick. Using slope change or price cross, it will filter off entries if the market wave is bearish, thus avoiding taking risky trades.  • MTF Trend Filter   The same thing, but higher timeframe. It is used to filter with the market wave, meaning the more global trend. It is a good habit to combine the 2 trend lines to drastically reduce the risk. The Adaptive Tilson T3 is one of my favorites, combined with the CROSSOVER condition.  • RSI filter   Useful with entries other than RSI to filter overbought entries. Use a higher timeframe to filter more aggressively. I would advice to use all 3 filters if you can. It will prevent getting into lengthy trades as we will see below. Adjusting  • Backtest parameters   First you should go to the backtest parameters tab. Here is what is used in this example:    • Initial capital: 1000 €    • Order size: 100 € (the max deals is 10 here, total deals should not exceed initial capital)    • Pyramiding: 10 (the number of max deals)    • Commission: 0.075 % (Binance spot trading)  • Take Profit    Configure the take profit, in price %. I usually go with something from 1 to 4 %. In some cases, activating the trailing TP can be interesting.  • Backtest results   In addition to the strategy tester, the indicator has a backtest panel containing useful information. Here are some of it:    • Net Profit (% and fixed)     Useful to see how volatile a pair is compared to others.    • Avg # Bars in a deal     Average number of bars a trade can take to be completed. < 100 - great, > 100 - can be improved, > 200 - bad    • Avg # Days in a deal     Same information but in days.    • Max # days in a deal     Maximum number of days a trade took to be completed. < 30 - great, > 30 - can be improved, > 60 - bad Example of settings that can be improved: The Avg # bars and Max # Days in a deal are flashing red and orange. It means it can be improved. By adding the 3 filters, increasing the stoch entries timeframe and reducing the take profit to 3%, we are getting a much more secure strategy: All the settings are in green, we know that over 421 days, the maximum days a trade took is 13.78, and a trade takes 1 day in average. █ AUTOMATION When you subscribe on my website, you unlock access to the indicators but also an automation system for Binance. The system is using the indicator alerts to automatically place orders on Binance using their SPOT Trading API. You can find a tutorial here . Create a bot The first step is to create a bot for your strategy. Make sure you have enough capital in your account for the strategy. Set the order size/quantity with the same value as in the indicator backtest parameters. Create the alert I recommend to create one chart layout per strategy. Once you are done setting up the indicator, set the alert messages. You will find the text fields at the bottom of the indicator input settings. You will typically need to fill "Long Entry" with the buy message, and "Long Take Profit" with the sell message. Once you have done that, save your chart. Click add alert on the indicator. Select the condition "Alert() function calls only". Tick "Webhook URL" and set the URL. It can be the one from my bot system or if you use another bot system with webhooks it will work too. Give your alert a name and click create. Make sure the alert is created in the alert tab. The alert will save the indicator, settings and timeframe at the moment you create it. If you decide to change an indicator setting, you must remake the alert. Fees If you trade on Binance, I recommend to enable BNB Spot trading fees, and always have a few BNB on your account to pay for the fees. That way, you can use a sell 100% quantity order without needing to take fees into account, unless you are using the strategy to trade BNB. In this case, use something like sell 99% in your sell message. Supervise Once your strategy is running, you can supervise it in the strategy tester in real time, in the alert logs and in the bot logs. ═════════════════════════════════════════════════════════════════════════ █ SCRIPT ACCESS Indicator and automation tools access can be purchased on my website. The link is in my signature below. █ SAMPLE USE CASES I will update this HOW-TO idea whenever I backtest a new pair, sharing the configuration and a link to a shared chart that you can copy and edit yourself. Example on MANA/USDT: Link to the chart: www.tradingview.com Thanks for reading. More to come below.
Education
by cyatophilum
2