Trading
Distribution
When smart money quietly sells positions before a drop.
Full Definition
Distribution is the opposite of accumulation - it's when institutional traders gradually sell their positions without crashing price. This often appears as a sideways range with multiple tests of resistance. Identifying distribution helps traders anticipate bearish breakdowns.
Example
After a long uptrend, price trades sideways with repeated rejections at resistance. Smart money is distributing. Eventually, price breaks down sharply.
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