Technicals

Distribution

In the world of finance, we often encounter the concept of supply and demand. However, there is a specific phenomenon that occurs when the demand for a stock is outweighed by the increasing supply. This results in a decline in the stock's price over time. This is known as stocks under distribution, which can be identified through patterns such as broadening, rounding, or double or triple tops. As investors, it is important to understand this concept in order to make informed decisions.

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