Originally Posted by jfresh
Kind of a noob- can you explain what you mean by 'major accumulation'?
Just to add to CKY's response. Accumulation refers to buying being done by hedge funds and other institutional investors, the "smart money" if you will. This is important because it's these smart money players that make stock prices go up and down.
Distribution refers to selling by these same hedge funds.
Theyre are many ways to get an idea of accumulation and distribution. I like to
look at three things: 1) intraday volume for the past 5 days 2) daily volume and compared to prior few days 3) daily volume compared to the avg volume of the past 50 days.
Hope that helps.