Distribution
REN/USD Main trend. Accumulation 637. Distribution 637.Logarithm. Time frame 1 week. The main trend.
The psychology of accumulation and distribution zones.
The graph shows and describes the logic of work in the accumulation and distribution zones of large and small market participants (fuel). Coin as an example. It's always the same. But, always those who are “market fuel” are sure: "This time it will be different. But, no miracle happens. It's always the same. “Market fuel” changes cycle after cycle.
Most people's memories are short. Many people think they're special, or the timing is wrong... but it's always the same. In distribution, they willingly buy expensive. In the accumulation on the contrary, afraid, waiting lower, lower and so on...
Project and News
Ren is an open protocol that allows value to move between blockchains.
RIP-000-018: Financing Ren 2.0 and the Ren Foundation
Early last year, Alameda acquired Ren in partnership with Ren's previous management to provide long-term development funding.
Also, after the story with Alameda (scam, trial) in the network REN 1 will be shut down (waiting for the right moment according to the general market trend), the new network REN 2 will be launched. Read more on the project website itself (read between the lines).
ICO price 02 2018
ICO: 17200 REN = 1 ETH.
Now the price of ETH is about $ 1200, therefore, the price of the ICO in conversion to USD will be REN 0.069, which is slightly lower than the current price of 0.063
Linear graph
Secondary trend. Time Frame, 3 days.
The secondary trend is distinctly downward. A downward wedge is forming.
From the peak, the price decreased by -95% at the moment. This is very much, but if you consider the inadequate pumping of +11,000%, it is normal.
Think about it, the distribution has been 1.76 years. Many people got used to the “stable” price for such a long time and over time were no longer afraid to buy “cheap” because from the support of the distribution pumped by a significant % repeatedly. Also note that the accumulation and distribution over time of duration are identical.
I showed the maximum local pumping from the key support zones when the wedge is broken, i.e. the exit from the downtrend. Let me remind you that at the moment the trend has a pronounced downtrend.
You can work positional trading from the average buy/sell price of the medium/long term, or you can wait for the price to exit a downtrend, that is, to exit a wedge with significant buyer volume.
In order to understand further work, and the potential, figure out what manipulation REN1 - REN2 coin holders want to do.
How to Use the Accumulation/Distribution IndicatorLearning how to identify accumulation and distribution in an asset is an important skill to have for any trader. Luckily, there’s a handy tool we can use: the aptly-named Accumulation/Distribution indicator.
In this article, we’ll show you how this accumulation/distribution indicator works, where it’s best applied, and how you can combine it with other tools to boost your odds of success.
What Is the Accumulation/Distribution Indicator?
The accumulation/distribution indicator, also called the accumulation/distribution index, accumulation/distribution line, and abbreviated to A/D, is a cumulative indicator that uses price and volume data to measure the strength of an asset’s trend. It helps traders identify buying and selling pressure in the market and can show whether an asset is likely to continue trending or is due for a reversal. It was created by renowned trader Marc Chaikin, who also developed the famous Chaikin Money Flow indicator.
Accumulation vs Distribution
Accumulation occurs when buying pressure outweighs selling pressure, resulting in price appreciation. Conversely, distribution is where sellers have the upper hand over buyers, creating downward momentum. In practice, the plotted A/D line will move up when accumulation is present and down when distribution occurs.
Accumulation/Distribution Oscillator Formula and Components
The ADI seeks to quantify an asset's buying and selling pressure by considering its trading range and trading volume.
First, it calculates the Money Flow Multiplier (MFM) using the following formula:
MFM= ((Close−Low)−(High−Close)) / High−Low
This results in a reading between -1 and 1. When the price closes in the upper half of its high-low range, the MFM will be positive. If it closes in the lower half, then MFM will be negative. In other words, if buying pressure is strong, the MFM will rise, and vice versa.
Second, it generates the Money Flow Volume (MFV) with the following:
Money Flow Volume = MFM × Volume
For the first candle in a given chart, the MFV is the first A/D value. Since the indicator is cumulative, the MFV is added to the previous A/D value. In essence:
First Calculation = (ADI = MFV)
Subsequent Calculations = (ADI + MFV)
This then creates the A/D line. While it may seem unnecessary to know the formula, it can provide us with significant insight into how an accumulation/distribution rating is given. For example, a strong bullish trend may cause an asset to close high in its trading range, producing an MFM reading close to 1. If this is backed up by high volume, the A/D line will surge upward. However, if the volume is lacking, then the A/D may only increase slightly.
Thankfully, we don’t need to perform this calculation ourselves. With the free TickTrader platform we offer at FXOpen, you’ll find the accumulation/distribution indicator and dozens of other tools ready to help you navigate the markets.
How to Use the Accumulation Distribution Indicator
There are three popular ways to use the A/D indicator: identifying reversals, trend confirmation, and trading breakouts.
Identifying Reversals
One of the most effective uses of A/D is to spot potential reversals using divergences between the price and the A/D line.
A bullish divergence occurs when the price falls, making lower lows, while the A/D line trends upward, creating higher lows. Conversely, a bearish divergence can be seen when an asset makes new highs, but the A/D puts in lower highs.
It essentially shows us that while the price is moving in a specific direction, the underlying pressure supporting the move is waning. The example above demonstrates that fewer sellers are participating as the trend progresses lower; eventually, buyers take over and push the price much higher.
Trend Confirmation
A/D line can also be used to confirm the direction of a trend. In this context, traders monitor the alignment of the line with the price action.
In an uptrend, both the price and A/D should be rising. If the A/D moves in the same direction as the price, it confirms the strength of the uptrend and suggests that the buying pressure is likely to continue. As in the chart, traders could have used the A/D and price alignment to position themselves in the direction of the bull trend.
Similarly, during a downtrend, the price and the A/D should be falling. If the A/D is falling alongside the price, it indicates that the selling pressure is strong, and the downtrend is likely to persist.
Trading Breakouts
Lastly, A/D can help traders confirm breakouts beyond support/resistance levels. If there’s a critical level that a trader is watching to jump in on the breakout, a breakout beyond a similar level in the A/D indicator can signal the start of a new trend.
In the example, we see a strong resistance level, both in price and the accumulation distribution chart. As the move is confirmed by A/D, breaking out above both dashed lines, traders have confidence that the price is ready to move higher.
Integrating the Accumulation and Distribution Indicator with Other Tools
While the A/D indicator is a valuable tool on its own, it’s best to use it in combination with other indicators to help filter out false signals and improve the accuracy of your predictions. Let’s take a look at two indicators to integrate with A/D: moving averages and the Relative Strength Index (RSI).
Moving Averages
Moving averages are a popular tool used by many traders to determine the direction of a trend, especially when two moving averages cross over. As mentioned, the trajectory of the A/D line can show traders that a trend is supported by volume; similarly, a price sitting above or below a moving average can indicate a trend’s direction. Using the two together can provide an at-a-glance reading of a trend, which can be extremely useful for trend-following traders.
In this example, we’ve used the Exponential Moving Average (EMA) cross indicator in TickTrader, with two 20-period and 50-period EMAs. The fast EMA crosses above the slow EMA, showing that a potential bullish trend is forming. The price continues to stay well above the 50-period EMA as time progresses, demonstrating that there’s a strong bull trend.
We also have confirmation from the A/D line that the bullish momentum is backed up by supporting volume. Seeing this, traders can be confident that the trend will continue. When the EMAs cross over bearishly, as seen on the right-hand side, traders may start looking for the A/D line to confirm that a bearish trend has started and exit their position.
RSI
Similar to the A/D indicator, RSI can be used to both spot divergences and confirm trends. The divergences are the same as A/D; a lower low in a price with a higher low in the RSI indicates a potential bullish reversal, while a price making a higher high and a lower low in RSI is regarded as bearish. Meanwhile, an RSI reading above 50 is typically seen as bullish, while below is bearish.
Using the two indicators together can offer traders extra confluence that the market is headed in a particular direction. In the chart shown, we can see that the price is making a lower low. However, the Apple stock’s accumulation/distribution line shows a bullish divergence, as does the RSI.
Traders could have marked the most recent area of resistance (dashed line), and then waited for the price to break out above it before looking for an entry. This move was confirmed by the RSI moving above 50, showing that bullish momentum is truly entering the market and offering multiple factors of confluence.
What to Do Next
You now have a comprehensive understanding of the accumulation/distribution indicator, including its formulation, its three main uses, and how to combine it with other indicators for extra confirmation. Ready to put your newfound knowledge to the test? You can open an FXOpen account to apply what you’ve learned and hone your trading skills across a diverse range of markets, from forex and commodities to stocks and indices.
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ABBV more probable to go down first before reaching ATHThis idea is based on Wyckoff's method for determining price objectives using the Point & Figure count of distribution ranges. We can a distribution ranges following schematic 2 for Wyckoff's distribution.
If we take count the ranges separately, this yields a potential reversal zone between 118.50 and 94.50 dollar per share.
Personally I am intend to buy if price reached 106.50 (mid point)
All other information is on the chart.
Good luck,
NQDecipher
ENPH looks Doomed if this Wyckoff Distribution Plays OutIve discussed Wyckoff Distributions before on this page. For a simple breakdown of this pattern, I've related this post to a previous post that can be found below.
Anyway, I believe we are seeing many of the same distribution cycle elements on this solar stock. I think we are currently in phase D which is usually characterized by a false bullish breakout into a downtrend. I am concerned about the lack of a clear downtrend after creating the false break. Notice the higher lows being created by the wicks in the lower portion of the channel. Long lower wicks with relatively small/avg volume suggest that selling pressure is weak. If that is the case, big money is not yet ready to take this lower.
I will be monitoring this price action closely and looking for more false breakouts and retests of the upper channel. I plan to build short positions above $200 if the opportunity presents itself. Price targets to the downside include $95, $60, and $35.
JUNE 6 SELL TRADE -USD CADSell trade in my account (MT5)
Valid DROP base Drop scenario ---> wyckoff distribution
I wait for valid BOS in lower and higher TF then entry at mitigation of 15 min IC in the structure.
RR: 1:9
take home 1:7 only because of my set TP in mobile.
Note:
for study purposes , please check my charts published.
BTCUSDT.P Trading IdeaHi everyone,
We all waiting the BTC going up. But probably not this week.
I think the following 'Distribution' scenario is quite possible. The RSI moved out 70 points zone, the important structure point on the left side was sweeped.
And here we might catch 2 trades. Open a "Long" position when price comes back to range after the "SOW" action, and "Short" after "UT" (marked with green and red arrows on a chart).
Trade #2 of 5 BILI Puts and CallsObviously if the market goes against my bias this trading plan is no longer viable....at that point I will just make a new one to support what I see. However with the recent decline in its financials and on going poor performance, this cash cow is getting kicked to the curb by all institutional and or being slammed into the earth like a seed in hopes that it will someday blossom into some man eating plant. Its an anime company so, totally do able. I've made a 5 trade plan to support what I saw when I first started trading BILI last week. If you like what you see or are intriqued pls like / follow / and Boost so others can see it. Thanks.
by iCantw84it
04.10.23
RYTM- More downside to come? NASDAQ:RYTM This stock seems to be following a textbook Wyckoff market cycle and appears to be transitioning from markup to markdown.
Mid May was the beginning of a multi week base building/accumulation On June 16-17 we can see the "spring" that preceded a huge markup in prices. After that a sharp rally in prices into the $11-$13 range that formed a pennant continuation pattern, then earnings came and boom it shot into a preliminary supply area(PSY) followed by a 35% move from $20 to a day high of 27.21 buying climax (BC). Last weeks UTAD failed rally/ blowoff top on high volume gave way to this weeks feeble rally with red hourly candles on high volume, showing that big players are dumping shares onto greedy retail traders, who are providing liquidity. A crown has formed and todays large red candles punched down into lower prices with a high probability of lower prices in the future. The last points of supply (LPSY) seem inevitable. Given the context of Julys " bad news is good news" rallies in many stocks this was one that wasn't left behind. It appreciated 10x from its June low!
This stock is slowly dripping down into a low volume area. Once there, it might just liquidate dramatically downside. Will be on the lookout next week for any relief rallies that will provide low risk short entries. Ultimate target would be the $17.04 .5 fib or $13.76 .618 fib range, potentially lower considering the current state of the market.
Please like, comment or follow :)
Wyckoff Distribution Patterns - GBPUSD 298 and 170 - decreasing volume at the tops of the chart. After the peak marked with the volume of 170, the next peaks are with much less buyer activity. In summary, buyers have lost their power.
In addition, the chart shows the largest sell-off wave 233. This is the largest volume under the swing since we entered the sideways consolidation.
Indicators used: Wyckoff Wave Chart
What do you think about this chart?
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USDCAD MAY 4 2023- SELL TRADEDISTRIBUTION SCHEMATICS on higher timeframe-----> VALIDITY again for higher timeframe.
Entry at 30min Institutional candle after seeing validity of the structure.
RR: 1:26
Wyckoff distribution + smart money concept entries.
Check the story on 5min---> 15min----> 30min---> 1H TF. you can see the same print of move up to 4H TF.
Accumulation Manipulation Distribution Ran into this 'AMD' concept on Twitter, never looked at charts as such. Can this NASDAQ:SMH Daily chart play out as such? Does it make sense to indicate Accumulation Manipulation and probable Distribution like this, or do we need more for this (?)
Keeping an eye on it this way is harmless. Let's watch and see how it plays out. Always keep learning.
SPX500 - Distribution WyckoffIt seems that at this point, the SPX500 may fall to around TSE:3600 levels. After that, the game will continue in the HKEX:3800 - TSE:4100 range. A solid breakout above the TSE:4100 levels could lead the price to ATH levels. However, after a long distribution consolidation, a drop below TSE:3600 could mean a bear market in global markets. According to the patterns, this could occur around the turn of 2023 and 2024. Perhaps this will be a time of tension between the US and China.
Gold - distribution WyckoffIt seems to me that we are dealing with the last wave of distribution, which has given rise to a feedback divergence. Levels around TADAWUL:2100 are very significant. There may be a fake breakout there, suggesting a continuation of the uptrend. It should be remembered that after several years of growth in gold, there should be a distribution and a return to accumulation levels.
NIFTY Prediction for 2023This is basis two things from 2015 when similar patter emerged. I have matched with 2015 keeping the time lengths in mind.
1. What are the phases?
2. How long do the phases last?
IS there any match with Elections for the final pump heading in 2024 Generals?
All the points match up beautifully to the perfection. Please refer to my previous one given below for matching with 2015
This is not for trading, this is for investment accumulations.
Note : For traders there's always a bull market somewhere, stick to high relative strength stocks and keep SLs. Thats all, simple.
🔥 Bitcoin In Wyckoff Distribution: Is This The Top?Bitcoin has been trading sideways for the better part of two weeks now. Yesterday, there was a short-lived break out through the FOMC resistance, which got sadly sold off quickly.
Since the break out was only minor & short-lived, there's a probability that we're currently trading in a Wyckoff distribution pattern, which could signal that this is area is the Bitcoin top for the foreseeable future. Check out the theoretical schematic below.
If we'd follow this Wyckoff distribution pattern, that would indicate that there's still one more move up before the real sell-off. As long as the price does not break below the AR-support (purple) before breaking above the UT-resistance (yellow), this pattern is valid. Furthermore, the UTAD break out can't reach much higher than the UT top ($30k?) before being sold off.
Consequently, the UTAD top would be in an area of heavy resistance from the last two years of trading, see yellow area below.
Do you think we're in a Wyckoff distribution pattern? Are we breaking down? Share your thoughts below.
Note: I'm still bullish on BTC, especially in the long-term. However, I think it's valuable to look at different perspectives of the market, even if it goes against my bias.
GBPJPY Push into Supply: Short 16:1 RRGJ has shown consistent weakness at this level. A promising sell initiative through the Asian open points to a push lower. I’m expecting a retest of 163.746 into a push lower to test local demand at 161.700. This trade is contingent on yesterdays intraday trend being broken.