distribution line
Definition
An indicator used in technical analysis which helps an investor project future price movements by looking at trading volume. This prediction is based on the theory that increased trading volume is often an indicator that the stock price will soon increase. As volume increases, this indicator predicts that the stock price will soon increase, meaning that it is a good time to buy the stock. also called accumulation line.
Use distribution line in a sentence
“ You should always try to make sure you have a good distribution line that will make the process easier for you. ”
“ The distribution line indicator was really good to use because it told us a lot of things that we needed to know for ourselves. ”
“ The distribution line provided a useful picture of the trading volume on the exchange so investors could make better decisions. ”
