Heavy volume, but no move in the stock price, I keep hearing thats "Distribution" what does that mean?

also is that an indicator thst the stock price may rise or drop.

Asked by kobla in General Market 6 months ago

Answers

2222 points

This is part of the accumulation/distribution theory of stock picking. It deals with the fact that many times the volume of stock trades goes up prior to the price starting a move up. More information can be found at http://stockcharts.com/school/doku.php?id=chart_school:technical_indicator s:accumulation_distribution_line

This policy is mostly used to maintain the stability of the stock price... Here the volume of distribution doesnt affect the stock price..