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  1. Home
  2. /Glossary
  3. /Distribution Phase
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trading

Distribution Phase

When smart money sells their holdings to retail investors at high prices after a big run-up.

Definition

When smart money sells their holdings to retail investors at high prices after a big run-up. Price action looks choppy and ranges sideways while volume increases. It's the opposite of the accumulation phase and usually comes before a significant drop.

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Related Terms

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Whale

Someone who holds a large amount of cryptocurrency, enough to move markets with their trades.

Technical Analysis

Studying price charts and patterns to predict future movements.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

Ask Price

The lowest price a seller is willing to accept for an asset.

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