A technical analysis pattern used as part of the Accumulation/Distribution Indicator (A/D). A bullish stock will display strong signs that it’s being accumulated (of showing a high level of demand). The opposite is also true in that a bearish stock will show more supply than demand, creating a distribution. Distribution patterns display the amount of sell-side pressure on a stock and can act as an indication of when to buy and when to sell.
Distribution Pattern
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Distribution Pattern.