Accumulation and Distribution
A market rarely goes straight from one trend into the next. Most of the time it pauses first, spending a stretch going nowhere in particular, and that pause is where the next move gets built. This idea traces back to Richard Wyckoff, an early twentieth-century trader who framed the market as cycling through four phases, and the two ranging phases, accumulation and distribution, are the ones to learn to spot while they’re happening, not only after the fact. ...