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Distribution

Volume Profile Analysis glossary · Profile Shapes & Distributions

Definition

A market phase in which large participants unwind positions at a price level, typically without causing substantial directional movement. Mirror image of accumulation.

Distribution in plain English

Distribution is the phase where big players quietly sell off (unload) the large position they'd built up, doing it slowly at one price zone so they don't spook the market into dropping. Imagine a concert reseller who bought 500 tickets and now dribbles them out a few at a time near the same price — if they dumped all 500 at once, the price would crash, so they stay patient. Because the selling is spread out, price often just churns sideways instead of falling right away. It's the exact opposite of accumulation, where big players are quietly BUYING up a position instead.

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