Famous traders' strategies

Accumulation

Defined in 1 lesson · Updated October 17, 2026

Definition

A trading range after a decline in which large buyers absorb the remaining supply before a rise.

Example

Suppose a stock falls from $60 to $30, then trades between $30 and $34 for three months, with volume drying up on each dip. A quick drop to $29.20 that snaps back above $30 (a Wyckoff spring), followed by a close above $34 on heavy volume, fits accumulation. If price instead breaks below $30 and stays there, the range was only a pause in the decline.

Hypothetical numbers, for illustration only.

A chart with a shaded demand zone, a small base of candles before a strong rally, and a shaded supply zone above, a base before a strong drop, both extended to the right; price later returns to the demand zone and prints a buy triangle.

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