Definition:
The accumulation ratio is a metric that measures the level of accumulation or distribution by active market entities.
The Accumulation Ratio evaluates both the relative size of participants and the amount of coins they have acquired or disposed of in the past 30 days. This metric is aimed at describing the accumulation behavior of active market participants.
The indicator ranges from 0 to 1.
In the photo below, you can see the accumulation ratio since 2011. High accumulation periods for active entities are indicated by areas with abundant purple, while areas with significant yellow denote high distribution periods.
What to watch for:
Distribution: A score closer to 0 indicates that the coin is being traded frequently by active entities. This represents a distribution phase, meaning active market participants are selling.
It can be noted that distribution (yellow) tends to occur after a market peak.
Accumulation: A score closer to 1 indicates that the coin is being held for long periods of time by active entities. This can represent an accumulation phase, meaning active market participants are buying.
It can be noted that accumulation (purple) tends to occur before a market peak.
Requires Free Moonwalker Research Account
* The information contained on this Website and the resources available for download through this website is not intended as, and shall not be understood or construed as, financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information contained on this Website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. We have done our best to ensure that the information provided on this Website and the resources available for download are accurate and provide valuable information. Regardless of anything to the contrary, nothing available on or through this Website should be understood as a recommendation that you should not consult with a financial professional to address your particular information. MoonWalker Research expressly recommends that you seek advice from a professional.
Comments