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Yep no worries. A reverse accumulation is one of my constructs,...

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    Yep no worries.
    A reverse accumulation is one of my constructs, and does not form part of general Wyckoff or VSA education.
    The closest they come to it is called "absorption volume", which is generally taught as happening on a breakout (which is true).
    I developed the idea from watching price action, and when constantly putting price action into context, it became obvious.
    Perhaps this is a more modern approach to buying and accumulation.

    To understand reverse accumulation, you probably first need to understand a regular 'text book' type of accumulation.

    This can get a bit complex, so I will just explain it is simple terms as individual bars, but remember the market is actually better understood using wave actions. With waves of buying and selling alternating in the market.


    Most very Large Accumulations are initially begun on Down Bars, often with some form of climactic action (eg- usually a down bar with really high volume, which often closes off its low). This is the serious buyers stepping up when they see value - often when main stream news remains bad and the broader market is still selling off.
    Sometimes when a market is seriously weak (for whatever reason), an entire accumulation can take place on a single down bar.
    A high volume down bar is certainly the proffered way for professionals to accumulate (or begin an accumulation), as the buyers can allow the sellers to 'come to them', and there is little danger of pushing up price against themselves too much, even with really strong buying.

    Following this climactic bar, if there is still supply in the market and the buyers want more stock, price would normally then move sideways and trade within a (broad) range as the period of accumulation continues.
    Then eventually price would breakout, the buyers would become committed to their positions, and the mark up phase would begin.

    So basically, we are referring to strong buying (accumulation) taking place on a Down Bar or on multiple down bars.



    Sometimes however, the market wants to buy stock, but there is no chance of a really high volume down bar developing (for whatever reason), so a regular type of accumulation (on down bars or down waves), cannot easily take place.

    A Reverse Accumulation happens the opposite way, as an Up Bar.

    I often call any strong buying on the way up as a 'buy the offer' situation.
    This generally takes place at new lows, or at the lows of a trading range (as this type of trading can also form just a part of an overall accumulation or re-accumulation).

    Generally the buyers are seen to quickly step up and buy what stock is available on the 'offer'.
    They usually buy up to a certain price level, and then once reached the market is left unsupported, and price falls under its own weight.
    This can leave behind a bar with a poor close, which may be interpreted as severe weakness - if not put into correct context.
    This incorrect analysis is great for the buyers as it draws out even more supply which then puts up more stock available on the offer.
    The 'offer' is then reloaded by sellers over time, and when deemed worthwhile, the 'offer' may be quickly bought again at a later time.
    This maybe repeated many times until supply is exhausted, or the buyers have enough stock (sometimes it may take place at slightly higher levels each time, if sufficient stock cannot be drawn out of the initial price level any longer).

    The reason there is an upper price limit is that strong buying like this will quickly push price up against themselves, and remember - the idea is to buy their position (accumulate) at the 'lowest price possible', this is not part of the mark up phase.

    Hope that helps
    If not, I can probably find a chart showing it later sometime, although it sometimes does not appear particularly significant.
    That is perfect though, as the buyers don not really want to attract much attention.

    cheers
 
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