🔵Accumulation and Distribution Are Schematics
These models help traders read a trading range as a sequence of institutional events rather than random sideways noise.
Key characteristics:
- •Each phase has a specific job
- •The sequence builds context for what happens next
- •Volume and behavior matter as much as price position
- •The model works best as a structure framework, not a shortcut
🟣Accumulation Sequence
Accumulation moves from support stabilization into a final confirmation before expansion begins.
Key characteristics:
- •Preliminary Support and Selling Climax define the lower end
- •Automatic Rally and Secondary Test shape the range
- •Phase B builds cause inside the range
- •Spring, SOS, and LPS complete the stronger confirmation path
🟡Why the Spring Matters
The Spring is important because it tests whether supply is really still strong below the range.
Key characteristics:
- •It clears stops below support
- •It creates the appearance of weakness before reversal
- •Volume should show exhaustion or rapid absorption
- •It often becomes the defining educational moment of the range
🔴Distribution Mirrors the Logic in Reverse
Distribution uses the same structural idea with opposite direction and opposite crowd behavior.
Key characteristics:
- •PSY and BC mark early and peak supply behavior
- •UTAD acts like the bearish counterpart to the Spring
- •Late buyers are trapped above the range
- •Markdown often follows once the trap is complete
🟢What the Schematics Help You Improve
These models help traders read intent, timing, and phase progression with more structure.
Key characteristics:
- •Better range interpretation
- •Cleaner expectation-setting inside consolidation
- •Stronger connection between event and phase
- •More useful post-trade review of how price actually behaved