Re-accumulation and re-distribution

What it is

Not every Wyckoff range is a turning point. Re-accumulation is a range inside an uptrend where large players add to positions before the trend resumes. Re-distribution is a range inside a downtrend before it continues lower.

They follow the same phases, but can be confusing: the start of a re-accumulation range often looks like distribution (a buying climax and reaction), and vice versa. What settles it is phase C and D: a spring and signs of strength mean the uptrend is resuming.

How to spot it

• A range that forms partway through a clear trend.
• Shallower and shorter than the main accumulation or distribution ranges, usually.

How to use it

• Trade it like accumulation: wait for the spring or the sign of strength and buy the LPS.
• Keep the higher-timeframe trend in mind when deciding which way a range is likely to break.

Common mistakes

• Assuming every range at a high is distribution.
• Deciding too early in phase B.

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