Trader's Glossary

DistributionWyckoff Distribution

Smart money offloading to retail in a sideways range at the top, before markdown.

Distribution is the mirror of Accumulation: a sideways range at the top of an uptrend during which smart money offloads inventory to euphoric retail buyers. The Upthrust in Phase C is the trap entry. Markdown (Phase D) follows.

Distribution is often signaled by deteriorating volume on each push higher and a final upthrust on heavy volume with no follow-through. The classic short setup: Upthrust → close inside range → bearish BOS on lower TF → short on retest.