What Is the Accumulation Area?
The accumulation area on a price and volume chart is characterized by mostly sideways price movement, which is seen by investors or technical analysts as indicative of large institutional investors buying, or accumulating, a large number of shares over time.
This can be contrasted with the distribution zone, where institutional investors begin selling their actives. Being able to recognize whether an instrument is in the accumulation zone or the distribution zone is helpful to investing success. The goal is to buy in the accumulation area and sell in the distribution area.
Understanding the Accumulation Area
The accumulation area is important for investors to recognize when making buy and sell decisions. Experienced investors look for patterns indicating an instrument is either at a high point, low point, or somewhere in between. The goal is to determine if there is momentum in a price and in which direction. An instrument in the accumulation area may be about to break out. When a price doesn't fall below a certain price level, and moves in a sideways range for an extended period, this can be an indication to investors that the instrument is being accumulated by investors and as a result, will be moving up soon.
The accumulation area is just one form of charting. Charting is also used to identify what is known as the distribution zone, which may indicate that an instrument is nearing a selloff. Investors look for divergences between price fluctuations and trading volumes as key to their charting analysis.
It was a short review about accumulation areas and how to work with them.
Now according to the technical analysis there is a sideways trend with channel formation on Bitcoin pattern.
According to the information mentioned above this is the key level for Bitcoin price and after breaking support or resistance zone there will be a vision of future price movement.
Relying on the news background and restrictions imposed on working with cryptocurrency, their future may not be as bright as it seemed to us earlier
What do you think about this case and what are you palnning to do, dear crypto traders?
_____________________________________________________
If you enjoy my FREE Technical Analysis , support the idea with a big LIKE👍 and don't forget to SUBSCRIBE my channel, you won't miss anything!
Feel free to leave comments✉️
And always remember: "we don't predict, we react".
The accumulation area on a price and volume chart is characterized by mostly sideways price movement, which is seen by investors or technical analysts as indicative of large institutional investors buying, or accumulating, a large number of shares over time.
This can be contrasted with the distribution zone, where institutional investors begin selling their actives. Being able to recognize whether an instrument is in the accumulation zone or the distribution zone is helpful to investing success. The goal is to buy in the accumulation area and sell in the distribution area.
Understanding the Accumulation Area
The accumulation area is important for investors to recognize when making buy and sell decisions. Experienced investors look for patterns indicating an instrument is either at a high point, low point, or somewhere in between. The goal is to determine if there is momentum in a price and in which direction. An instrument in the accumulation area may be about to break out. When a price doesn't fall below a certain price level, and moves in a sideways range for an extended period, this can be an indication to investors that the instrument is being accumulated by investors and as a result, will be moving up soon.
The accumulation area is just one form of charting. Charting is also used to identify what is known as the distribution zone, which may indicate that an instrument is nearing a selloff. Investors look for divergences between price fluctuations and trading volumes as key to their charting analysis.
It was a short review about accumulation areas and how to work with them.
Now according to the technical analysis there is a sideways trend with channel formation on Bitcoin pattern.
According to the information mentioned above this is the key level for Bitcoin price and after breaking support or resistance zone there will be a vision of future price movement.
Relying on the news background and restrictions imposed on working with cryptocurrency, their future may not be as bright as it seemed to us earlier
What do you think about this case and what are you palnning to do, dear crypto traders?
_____________________________________________________
If you enjoy my FREE Technical Analysis , support the idea with a big LIKE👍 and don't forget to SUBSCRIBE my channel, you won't miss anything!
Feel free to leave comments✉️
And always remember: "we don't predict, we react".
