CGB - 1.9c to 7.2c - What will happen in the next 6 months., page-1025

I believe from reading the description here, it's suggesting there are only two phases of stock movement, which is accumulation or distribution, depending on whether price is rising/falling, and then using volume to determine the strengths of those movements as an indicator.

I've never used this specific indicator before, but some old posters who were really knowledgable used to use PricexVolume indicators a lot which is similar to what this methodology is proposing.

@@valvesound has given the more widely used description of accumulation/distribution. Basically could also be seen as smart money entering/leaving, as a reversal is close. However the one issue I do have with the analysis given, is that there is no way to know if this is the bottom, or if it's distribution before another leg down, which is a possibility, although technically far less likely. It's a small change, but a useful one to note never-the-less.

Similarly, accumulation can occur after a run up, if another run up follows it to even higher highs, similar to a flag pattern etc.