Accumulation
When the stock is down, the professionals gather this stock .
So they sell and buy but buy a larger quantity of sales .
Why do they do that
When the stock falls they buy cheaply .
They always want to buy at cheap prices so they sell on top so that the price drops and they buy at cheaper prices .
What happens when you buy most stocks?
Once most stocks are bought from the market, the market starts to rise
But find selling resistance stands in the face of rising prices
So professionals have to buy that sale at cheap prices, which leads to a lower price
Thus, the resistance was eliminated preventing the bullish trend
Why should the stock rise ?
Because markets like to follow the path that has less resistors
You should expect the number of areas that are considered price resistance
Must identify the most resistant areas
You will find resistance from professionals to buy more on the next downtrend .
During the early stages ?
In the early stages of the accumulation process if the purchase is too much
Resulting in a high price
Your purchase will stop
Distribution
Distribution occurs in a rising market
They sell and buy but at the end sell more
than buy
During the early stages?
If the sale in large quantities, which led to
a strong fall in price
There will be support from the professionals to sell more on the next uptrend
End of the uptrend?
Once you sell most stocks
The market starts to fall
But the buying zones are supporting areas
that stand in the face of falling prices
Professionals sell on the next uptrend
and the support area has been removed
from the market
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