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Trading and Investment Terms

Accumulation

Accumulation means the amount of something is increasing over time.

Accumulation can also refer to the overall addition of positions to a portfolio.

In this sense, an investor is accumulating investments. 

As an investor contributes to their retirement portfolio over time, they may use the funds to buy, 

  • Additional stocks
  • Commodities
  • Other assets.

Accumulation/distribution is a cumulative indicator that uses volume and price to assess whether a stock is being accumulated or distributed. 

It measure seeks to identify divergences between the stock price and volume flow. 

This provides insight into how strong a trend is.

 

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