Distribution
Volume Spread Analysis glossary · Wyckoff Phases & Schematics
Definition
The third phase of the Wyckoff market cycle, in which professional operators sell their accumulated holdings to enthusiastic buyers near the top while the price trades sideways in a range. It is the mirror image of accumulation, and is identified through narrow-spread high-volume up-bars (selling caps the upside), up-thrusts that trap breakout buyers, no-demand rallies, a possible buying climax, and a final UTAD (up-thrust after distribution) that confirms the range is complete. Distribution can be fast (the buying-climax model — sold in a frenzy over days) or slow (the mushroom-top model — gradual rounding over weeks), and is accompanied by good news, media hype, and general euphoria that draw retail buyers in just as professionals are selling out.
Distribution in plain English
Distribution is the opposite of accumulation: it's where the big players quietly sell off the shares they scooped up cheaply, handing them to excited latecomers near the top while the price drifts sideways. Picture that same collector now unloading his cards onto a hyped-up crowd during a craze — every time buyers rush in, he's the one selling to them, capping the price. Telltale signs include up-bars that stall on high volume (selling caps every push higher), 'up-thrusts' that trap people chasing a breakout, and rallies with no real buying behind them, often crowned by a final fake breakout called a UTAD. It tends to come wrapped in great news, media hype, and giddy optimism — which is exactly what lures the crowd in while the pros are heading for the exits.
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