Distribution
Technical analysisSustained selling into strength, typically at a top, with heavy volume and choppy sideways price.
In plain terms
The stock feels exciting while large holders hand their shares to newcomers.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 11 terms
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Dow Theory
Technical analysisCharles Dow's framework: price discounts everything, prices move in trends, and a trend runs through accumulation, participation and distribution phases.
In plain terms
A century old and still the skeleton under everything in the field, because it describes how information and money propagate through a market — and that has not changed.
Fee income
Fundamental analysisA lender’s revenue other than interest — processing charges, distribution commission and fees for services rendered.
In plain terms
A processing fee integral to the loan’s yield is folded into the effective interest rate and spread over the loan’s life; commission and service charges are earned at origination. Fee income growing much faster than the book means more of the return is being taken up front.
Market Profile
Technical analysisA distribution showing how much time price spent at each level during a session.
In plain terms
Where the market considered itself fairly priced, rather than where it merely traded.
Point of control
Technical analysisAlso called: POC
The price level at which the most time was spent in a Market Profile distribution.
In plain terms
The session’s fairest price. A magnet while the market is balanced, irrelevant once it trends.
Positive skew
Risk & psychologyAlso called: Right skew
A return distribution in which a small number of very large outcomes pull the mean well above the median.
In plain terms
The shape equity returns actually take. Downside stops at −100% and upside does not, so a handful of holdings produce nearly the whole result and the typical one disappoints.
Wyckoff
Technical analysisAlso called: Wyckoff method
A framework from the early 1900s for reading accumulation and distribution from price and volume alone.
In plain terms
It addresses a constraint that has not changed: a large buyer cannot buy quickly without destroying their own price. Take volume away and it becomes drawing boxes on a chart.
Expected value
Risk & psychologyThe probability-weighted average of the outcomes of a decision.
In plain terms
It reframes a choice from whether this will work to what the distribution looks like. A positive expected value can still lose most of the time.
Flag
Technical analysisA short, tight, low-volume drift against a sharp preceding move, which then resolves in the original direction.
In plain terms
The drying volume is what makes it a flag: profit-taking is being absorbed without difficulty. Past about three weeks it has become a distribution range instead.
InvIT
Market basicsAlso called: Infrastructure Investment Trust
Infrastructure Investment Trust — a listed trust owning operating infrastructure such as roads, transmission lines or pipelines, distributing the income they produce.
In plain terms
Its headline yield is not comparable to a fixed deposit. A concession has a finite life, so part of that generous distribution is your own capital coming back.
Pullback entry
Technical analysisBuying a temporary decline within an established uptrend, at a moving average or Fibonacci retracement, on a bullish reversal candle.
In plain terms
The best risk-reward of the common templates, because the stop sits just under a nearby low. Skip it when the pullback arrives on heavier volume than the advance — that is distribution.