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Accumulation / Distribution

Accumulation / Distribution

Posted by Trader On January - 31 - 2009













The greater is the trading volume of the market, the more considerable can the rates fluctuate. In order to indicate the trading volume corresponding to the rates fluctuation technical indicator of Accumulation/Distribution is to be applied.

If the indicator is increasing it means that currency is accumulated or purchase is possible, as a large amount of trade is interconnected with the decreasing rates.

If the indicator is not corresponding to the currency rates, rates change can be forecasted. Normally in such cases the rates trend is changing in the direction according to the one of the indicator’s. E.g., if the indicator is decreasing and the currency rates are increasing, the currency rates will probably decrease soon

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