What is accumulation phase?

The Accumulation phase is where smart money quietly builds positions at low prices. This phase is characterized by sideways price movement with decreasing volume, as large players absorb available supply without driving prices higher. During the Markup phase, prices begin to climb as demand outpaces supply.

What is the difference between distribution and accumulation?

The distribution phase begins as the markup phase ends and price enters another range period. The shares are being sold over a period of time—the opposite of accumulation. This time, the sellers want to maintain higher prices until the shares are sold. Whether it is distribution or accumulation is less easy to discern at this point.

What is reaccumulation based on the Wyckoff distribution?

E. Reaccumulation (Phase E): In this final phase, the price stabilizes, and a new accumulation phase may begin, setting the stage for a potential new uptrend. There are several trading strategies based on the Wyckoff Distribution and, for the scope of this article, we’ll take a look at one for each of the three distribution phases.