Accumulation Area

Filed Under » , , , , ,
Dictionary Says

Definition of 'Accumulation Area'

A price range in which investors typically purchase shares of a particular stock. The accumulation area is determined by looking at the volume and its corresponding price. It appears as a rectangle with a price line bouncing up and down between the upper and lower limits. According to technical analysts, stocks that hit the accumulation area presents an opportunity to buy because it is expected to attract more demand.
Investopedia Says

Investopedia explains 'Accumulation Area'

Investors use technical analysis techniques, such as the on-balance volume (OBV) method, to detect the momentum of a stock. If a stock doesn't seem to fall below a certain price, this can be a sign that the stock is in an accumulation area and may be more likely to attract more investors, allowing traders who see the trend to profit from increased buyer interest.

Articles Of Interest

  1.

    On-Balance Volume: The Way To Smart Money

    This momentum indicator was designed to predict when major market moves would occur.

  2. Momentum Indicates Stock Price Strength

    Momentum can be used with other tools to be an effective buy/sell indicator.

  3. Peak-and-Trough Analysis

    Prices never move in straight lines, so it's time to learn about this powerful trend-following technique.

  4. An Introduction To Oscillators

    Find out how this indicator may help improve the average investor's entry and exit points.

  5. Charting Your Way To Better Returns

    Learn about the powerful hybrid techniques that take advantage of both technical and fundamental analysis.

  6. Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.

  7. Low Expense Top Performing ETFs

    A technical look at the four ETFs that rank highest for five-year performance, lowest expense ratio and total net assets.

  8. Break Into Forex In 12 Steps

    Learn how to get started in forex trading.

  9. Google Goes A Waze To Stay Strong In Maps

    Waze looks like a logical deal for shoring up the value of Google's mapping technology

  10. Market Summary For June 7, 2013

    The major U.S. indices were mixed this week as modest improvements in employment numbers struggled to offset stagnant wages and a slightly higher unemployment rate.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  2. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  3. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  4. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  5. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.

  6. Chartalism

    A non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=6547e3b6c8cd812aac640460a5fec0b5