What Is Reaccumulation?
Reaccumulation is a trading range inside an uptrend where large participants add to positions or shake out weak holders before the next advance. The structure resembles accumulation, but it forms at higher prices and is usually shorter.
Reaccumulation vs Distribution
Both can look similar until late in the range. Wait for the decisive break.
- Reaccumulation: strong rallies on rising volume, shallow pullbacks on light volume, supports hold.
- Distribution: weak rallies on falling volume, heavy volume with poor progress, supports break.
- Reaccumulation often shows a Spring or shakeout that recovers fast.
How to Trade It
Treat it like an accumulation entry: look for a test on low volume or a Spring, then a Sign of Strength and a Last Point of Support. Place stops below the range low, and use the prior trend and range width for targets.
Context matters: reaccumulation requires an existing uptrend on the higher timeframe.