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Setup, rotation & screening

Flow: Accumulation vs Distribution

Education only · our voice · free public data

Definition

A volume-weighted measure of whether buying or selling pressure dominates — quantifying the accumulation/distribution footprint into a trackable flow line.

How to read it

Flow indicators (e.g. Accumulation/Distribution line, on-balance volume, money-flow index) weight volume by where price closes within its range to estimate net buying vs. selling pressure. A rising flow line under rising price confirms the advance; a flow line diverging from price (falling while price rises) warns the move lacks participation. Flow is a supporting/confirming tool: its main value is agreement or divergence with price, not standalone signals.

How practitioners use it

Used as context among multiple indicators — never as a standalone signal to act.

Less common professional uses

Flow divergence often precedes price turns by several sessions; treat a multi-week flow/price divergence as a leading rather than coincident signal. Separate passive/index-driven flow from discretionary flow by comparing the name's flow line to its sector ETF — a name whose flow leads the sector shows idiosyncratic accumulation. Volume-at-price plus flow together locate the accumulation zone: a rising flow line while price coils above a high-volume node is textbook base-building before markup.

Sources & provenance

Volume-weighted flow measures (A/D line, OBV, money-flow index); Educational framework; not investment advice

This page is educational content published by Pachira Aquatica Global LLC. It is not investment advice and not a recommendation.

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