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In Wyckoff analysis, accumulation and distribution are key concepts that help investors understand the underlying market dynamics. Accumulation occurs when smart money, or institutional investors, strategically buy an asset at lower prices, anticipating a future price increase. This phase is marked by a gradual accumulation of shares by experienced market participants who believe in the asset’s potential. It’s like quietly gathering resources before a big move. On the flip side, distribution takes place when these savvy investors start selling their accumulated holdings to the less informed public at higher prices. This phase represents a careful and deliberate distribution of assets by the smart money to those who may not be aware of the changing market dynamics. It’s akin to smart money discreetly passing on the baton to the unsuspecting crowd. By recognizing patterns of accumulation and distribution in price charts, traders using Wyckoff analysis aim to align themselves with the smart money’s moves, potentially making more informed investment decisions. It’s essentially reading the market’s subtle cues to navigate the ebbs and flows of supply and demand. submitted by /u/TeqmoCharts to r/sharemarketmalayalam |