LOM chart, page-21

Accumulation and Distribution

Accumulation and distribution indicate who is in control of the market and often signal a reversal.
Trading ranges represent longer term accumulation or distribution.
mce-anchorAccumulation

Accumulation is when the market is controlled by buyers.
A down-trend that stalls while volume remains high signals that accumulation is taking place. Sellers have lostcontrol to buyers and a reversal is likely.
An Accumulation Day occurs when either:

• Volume increases (compared to yesterday) and closing price moves higher, or
• After trending downwards, there is little or no price movement and an increase in volume