Accumulation distribution Supply vs demand

Accumulation distribution

Accumulation distribution is a popular technical analysis method. In share market we use various methods to analyse stocks likebfundamental analysis and technical analysis. Technical analysis itself is devided into two. First school is people who follow chart patterns like triangles, head and shoulders etc. Next is people who follow wyckoff method. Chart patterns doesn't have importance in wyckoff analysis of stocks. Here supply and demand have more importance. Accumulation and distribution is one of the important coccept in wyckoff analysis. 

Stock goes through 4 phases in a cycle. Accumulation, Markup, Distribution and mark down. In accumulation phase composite operators accumulate stocks. Stock moves in side ways direction and it can continue for few weeks to months. This phase is further devided into more stages. I have explained all those in video below. After enough stocks accumulated, stock breaks out and move up. This phase is called mark up phase. Once stock reaches a stage where operators think the valuation of stock is high, they strart distributing or selling it and stock enters into a sideway movement. This distribution phase also has some characteristics which can help us to identify it. After all stocks are offloaded stock breaks down and move down ( mark down ).

Three main laws in wyckoff analysis are Supply vs demand, Cause vs effect and Effort vs Result. More posts will come in each of these topics

Volume is an important metric in wyckoff analysis. The comparison of volume and candle size give us a lot of informatiins about trend strength and trend reversal. 

Supply and demand and accumulation distribution levels analysis helps to find entry and exit of composit operators from shares.

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Check our other posts and videos in wyckoff analysis series

1. 4 Stages of wyckoff price cycle : Share market malayalam wyckoff analysis trading part 1
2. Accumulation Distribution - Supply vs demand : Share market malayalam wyckoff analysis trading part 2
3. Effort vs Result : Share market malayalam wyckoff analysis trading part 3
4. Intraday price volume analysis : Share market malayalam wyckoff analysis trading part 4
5. Trend reversal : Share market malayalam wyckoff analysis trading part 5
6. Market tops & Bottom and Weis wave indicator : Share market malayalam wyckoff analysis trading part 6

Check out our share market malayalam youtube page for more share market related videos in Malayalam