accumulation area


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Accumulation area

A range within which a buyer accumulates shares of a stock. See: On-balance volume and distribution area.

Accumulation Area

A price range in which buyers buy large numbers of shares of a stock. One can identify an accumulation area if a stock only rarely falls below a certain price. On-balance Volume Method analysts use accumulation areas to recommend stock purchases because they believe such stocks will attract large numbers of buyers. See also: Distribution area.

accumulation area

In technical analysis, a rectangular-shaped chart formation produced when insiders and other knowledgeable investors purchase shares of stock from the public and characterized by little price movement but relatively heavy volume. If an accumulation area can be identified, it indicates a time to buy. Compare distribution area. See also rectangle.
References in periodicals archive ?
The number of conveyor lines delivering cases to an accumulation area grew to 17--nine lines from one area and eight lines from another.
With the help of the CP it is possible to estimate whether a certain spot in the lake sediment surface is situated in an accumulation or erosion zone: CP < 2 means the accumulation area, 2 < CP < 3 means the transition area and CP > 3 means the erosion area (Terasmaa 2005a, 2005b).
These findings confirm the results of area change studies, which show that small basins at the periphery of the ice cap, with relatively low mean elevations and accumulation areas that do not extend to the main ice divides, are more sensitive to climatic change (Burgess and Sharp, 2004).
Although it is still overwhelmingly ablation, there are small accumulation areas tucked into the higher defiles, clinging on in patches of permanent shadow.
The resulting mini-stacks of boards are then transported onto the board stacker accumulation area where a row is formed.
Finally, parts travel to an accumulation area, where specially designed fixtures receive them as they complete their route.
Tenders are invited for install outside plant copper and optical fiber cabling for the new main accumulation area and innovation partnership buildings.
Massachusetts DEP reported that during inspections conducted last year, department personnel determined that the company allegedly failed to provide adequate security for its waste oil accumulation area, failed to post signs, keep adequate records and properly delineate waste oil accumulation areas, failed to label hazardous waste and waste oil containers and failed to keep potentially incompatible wastes separated.
In addition to violating air pollution standards three years ago, the DEP also cited the company for not properly labeling waste drums, installing proper signs in or delineating its hazardous waste accumulation area.