Hi @h00ts & @SmugLex, In a nushell - In larger caps stocks the...

Hi @h00ts & @SmugLex,

In a nushell -

In larger caps stocks the terms Accumulation and Distribution are perhaps not so absolute when compared to a micro-cap stock with only one driver (professional speculator) in place.
These large caps stocks will have many active players all with fairly large positions, and one may choose to sell - or distribute - at some point in time (for whatever reason), the remainder of the market may be quite happy to absorb this increased supply from the seller or sellers, and continue the mark-up phase (or up trend).
Whereas when the single large professional speculator sells out of the micro-cap stock, it is certain and obvious distribution.

A2M has likely seen this kind of situation recently, where considerable supply has been drawn out (most likely a larger holder selling down their position to some extent), and so far the A2M market has been happy to absorb this supply.
Note - a large holder selling may cause others to reconsider their positions, so the ongoing response needs to be monitored.

APT in contrast is being used as a trading vehicle for larger active market traders, and shows no obvious signs of increased supply.

The cumulative volume histogram (on top of the daily short sales) on the two charts below, is a handy way to easily compare the waves of selling and buying in the market.

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Understanding the Chart

Normal Volume (NV) in blue, pushing up with scale to the right (and average line in red)
DSS (Daily Short Sales) in red, pushing down
Both NV and DSS are relative (same size scale)

Short Interest in yellow as an area chart with scale to the left (not the same scale as NV and DSS)

All volumes includes both ASX and ChiX volumes.

Price wave in thin red line across the bars - wave size at Top Left - illustrates the waves of buying selling in the market (from daily closes with no fixed time period) The Price wave is dynamic in size , and customised to suit each individual chart.
On top of the red DSS, is a cumulative volume histogram, which shows the accumulated normal volume for each price wave, red for down or supply waves, and blue for up or demand waves. It serves to understand how much force or effort is inside each wave.

Any hollow proportion of a bar is a price gap (close to close).

Comments are all my own opinion and interpretation.
Chart made in MS Excel.
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The two most obvious waves of increased supply are inside the two boxes on the A2M chart below.
The amount of selling pressure can easily be seen and compared to the buying waves in response.
The fact price did not breakdown in response - and did not really lose too much ground at all - on all that increased selling pressure, suggests the A2M market absorbed the supply

..
..
Compare that to APT
There are no serious selling waves, all the increased volume waves are up waves - showing buying pressure is strong.
There is no obvious supply issues, and price is continuing to gain ground.



hope that helped, let me know if you need a more detailed explanation.

cheers

.