In this THREAD I will explain PO3 and how to trade it:
1. Accumulation, Distribution and Manipulation 2. Bearish PO3 3. Bullish PO3
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1. Accumulation:
Accumulation is a phase in the market where smart money or institutional investor are buying
During accumulation, the price is relatively stable, creating an impression of little activity. Behind the scenes, investors are accumulating.
High bullish volume.
1.2 Distribution:
Smart money start selling their accumulated positions, after making new highs.
During distribution, the price may exhibit weakness or struggle to move higher, after a big uptrend. Volume might increase, but price progress is limited or declining within time.