Accumulation / Distribution

The trend, support and resistance, along with accumulation (ACC) and distribution (DIST),  can be the cornerstones of a good method. ACC/bottoming process and DIST/topping process are generally (with nuances) mirror images of each other. They are basically the strong handed absorption of supply/weak handed selling in ACC, and the weak handed absorption of supply/strong handed selling in DIST. Theses areas are so powerful because they can give us staying power to sit thru the shorter term counter-trend moves inherent in all trends. For instance, a large accumulation area almost always leads to a very large uptrend. And the reactions/backups in an uptrend, at/below support, are the buying opportunities. The big accumulation can give us much more confidence that these areas will hold. ACC and DIST areas occur on all time frames.