ACCUMULATION

What is Accumulation?

We talk about accumulation when an investor or group of investors for a certain period of time buys large blocks of shares in a way that does not significantly affect their price and the volume is growing.

Accumulation follows a strong wave of sales with earlier braking, ending the inheritance movement initiated from the distribution. Usually, the first upward movement is largely abolished. This is a sequence of repetitive activities, during which strategic investors purchase a large number of low-price items, which is their main goal, and the prolonged time in which this takes place works in their favor. It is a well-thought-out process, most often in lateral motion and discreetly, imperceptibly, easily perceptible, sublime. The so-called "smart money" tries to do everything to remain unnoticed. Usually they succeed, because few people are interested in the value, on which little is happening and they stay in place for a long time. This is why independent analysis and observation of the market are so important. Only in this way will you be able to see them. You will not hear about them on TV or read them in the newspapers. during which the availability of a low-priced item falls, which clearly increases demand. This affects the take-up movement. Accumulation usually takes place in a limited area of the side trend but can take different shapes. The volume should decrease when the price reaches the support level and grow noticeably when the price approaches the level of resistance. We observe the phenomenon at every interval, so taking the position consistent with the direction started from the upward accumulation is the best solution. The test at the end of the correction is the right place to take the position. Accumulation is an easier formation to decipher especially on stocks when the price is low and the probability of increases is higher.