Wednesday, 6 April 2016

Accumulation and Distribution

n this blog we have tried our Global Market Astro blog visitors to explain regarding the technical tool used in the market to track the demand and supply trends. We have explained Accumulation / Distribution in simple terms.
Accumulation / Distribution
Accumulation / Distribution is a technical analysis tool that helps to track the demand and supply. It is a tool used to know whether the investors are accumulating / buying or distributing / selling a particular stock by identifying divergence between stock price and volume of the stock.
Accumulation / Distribution is calculated using the following formulae:

The investors can very well use the accumulation / distribution tool to get a clear idea on demand-supply equilibrium and can make up their trade decisions

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