TSX:QTRH - Post Discussion
Post by
Socrates1 on Sep 17, 2022 10:58am
Let's repeat this
Do not get distracted! Eye on the prize!
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Accumulation Phase
The accumulation phase begins when institutional investors – such as mutual funds, pension funds and large banks – buy up substantial shares of a given stock. Price forms a base as the shares of stock are accumulated. Institutional investors must buy over long periods of time so as not to conspicuously drive up the price of the stock, giving them a long time horizon.
This phase is not a lucrative time for retail investors to buy, as capital will be tied up, or the investor may experience a large drawdown of capital. However, recognizing the signs of accumulation gives insight to future opportunity. During this phase, price moves mostly sideways in a range. The range is identified by variable pivot highs and lows (Figure 1) and whipsaw-type price movement.
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