Trading
Accumulation
When smart money quietly builds a position before a move.
Full Definition
Accumulation is a phase where institutional traders gradually build positions without significantly moving price. This often appears as a sideways range with multiple tests of support. Understanding accumulation helps traders identify potential bullish breakouts before they occur.
Example
Price trades sideways for weeks with repeated bounces off support. Smart money is accumulating long positions. Eventually, price breaks out to the upside.
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