Accumulation or distribution

[Schopen]

When a stock is trending sideways with narrow bars and thin volume, are there any obvious signs that differentiate an accumulation from a distribution?

 

[Trader333]

If it is narrow bars and sideways action then it is most likely accumulation. Distribution is characterised by wilder swings in price.


Paul

 

[DionysusToast]

It could be neither. It could be price clustering around the option with the highest open interest as you reach expiration time.

Of course, TA traders may call this support/resistance depending on what had gone on before.