Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: U.B. Green who wrote (2078)	6/1/2000 2:04:00 PM
From: Steve Lee	Read Replies (1) \| Respond to of 30051

Distribution is a posh word for selling, but in a controlled way, like when a fund has a load of shares they want to sell, the sort of amount that really could move a stock. Instead of throwing it at the market, they sell whenever a certain price is reached, which is why you will see a stock fail to break resistance repeatedly before drifting lower. They will normally not sell massively but just soak up any buying at that level, because they will want to sell another block at the same price later on. If you see increased volume with no further price increase after a rise to the top of a trading range, this is a good sign that all the buying is being matched by a seller that still has more inventory to unload (or distribute). The other terms I believe would be used by someone watching a level 2 screen, which shows unfilled orders, both bids and offers, from the different brokers/MMs/Exchange members. I don't use level 2 so I won't comment more on those terms.