Distribution Pattern

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Distribution Pattern.

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.