Accumulation and Distribution

Forex market like operates in a rather simple way: it accumulates in one area and after a while distributes in another area. When the distribution is over, accumulation starts again, advances a certain distance and gives room to a distribution. As you can see this cycle repeats again and again and again… trading on accumulation and distribution is not suited for day traders since in day trading the cycle can be cut short, and the profits might be unexpectedly low.

If traders want to make real money using this method, they must wait until the accumulation is over and use the whole advance length until the distribution starts. When market conditions move to short-term trading, it’s best to use the distribution to generate profits.

To successfully use this method you have to study 8 or 4 hour line or candle-stick charts, especially 20 MA, for several months to fully understand the meaning of accumulation and distribution. The Forex market always works in this way, all you have to do is pick a strategy.
Please study 8 hour or 4 hour line charts or candle charts, especially the patterns and 20 MA inside the charts for a few months every day, and you will discover what I mean by accumulation and distribution for short-term trades in Forex market. Forex market always needs this process, so you can decide what tactics you will use at a given stage.

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