Accumulation Area
a.k.a. Accumulation zone, Accumulation
A sideways price zone, often after a fall, where bigger players are thought to be quietly buying before a move up.
An accumulation area is a stretch where price goes flat after a decline. Sellers seem tired, and larger traders may be buying a little at a time so they do not shove the price up while they fill their bags.
On the chart it looks like a calm, boring range. The theory is that the boredom ends with a breakout higher. Nobody can see who is really buying, so it is a reading of the shape, not a certainty. Its mirror image, at the top of a rise, is distribution.
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