Accumulation/Distribution

Accumulation/Distribution is a technical indicator that measures whether smart money is buying or selling a stock by combining price movement with trading volume. You'll see it on stock charts alongside other indicators, and traders use it to spot potential trend reversals before they happen. The idea is simple: if a stock closes near its high for the day on heavy volume, that's accumulation (buying pressure). If it closes near its low on heavy volume, that's distribution (selling pressure). For example, if TechCorp stock rallies but the Accumulation/Distribution line is dropping, it might signal that insiders are quietly selling despite the price going up—a potential warning sign. It's one tool among many to gauge where the real money is flowing.