What is accumulation?

Accumulation refers to the gradual build-up of a package of shares without the price being quickly driven up. This is a term from technical analysis and describes a period that often precedes a strong rise in the share price. During the accumulation period, there is usually a significant transaction volume. The opposite of accumulation is 'distribution', where shares are gradually sold.

This term is specifically relevant in the context of market analyses, where the behaviour of investors and the movements of share prices are closely monitored to predict future trends.