Distribution
Volume Price Analysis glossary · Wyckoff'S Laws & The Four Market Phases
Definition
The phase in which insiders sell inventory at high (retail) prices, creating a congestion zone at the top of an advance.
Distribution in plain English
Distribution is the sneaky phase where the big, informed players ('insiders') quietly unload the shares they bought cheaply earlier, selling them to excited everyday buyers ('retail') at high prices near a peak. Because they're selling a lot without wanting to crash the price, it happens gradually and price gets stuck moving sideways at the top — a congestion zone. Picture a concert promoter who bought tickets early and now slowly resells them to the last-minute crowd at peak hype, right before demand dries up. Spotting distribution warns you that a top may be forming and a fall could follow.
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