Accumulation and distribution are two of #Wyckoff's most important trading concepts.
š» Accumulation is the process of buying securities or goods at a lower #price and then holding them until the price rises, after which they can be sold at a #profit .
š» Spreading, on the other hand, is the process of selling a security or commodity at a higher price and then waiting for the price to fall before buying it back at a lower price.
š¹ Accumulation is often seen as a sign of significant underlying demand for a security or commodity, as investors are willing to buy and hold it despite short-term price fluctuations.
š¹ The split can be seen as a sign of weak underlying demand, as investors are willing to sell their assets even as prices rise.
This may mean that there may be a security issue or issue with the product in question.
In Wyckoff #trading , traders use these concepts to identify potential entry and exit #points in their trades.