27 Feb Chart Decoder Collection: Accumulation/Distribution – Observe the Whale Cash Circulate
Welcome again to the Chart Decoder Collection, your information to mastering the charts and your buying and selling universe.
You’ve most likely seen it occur. Markets rally sharply, solely to reverse days later.
These strikes are sometimes pushed by what bigger merchants are doing behind the scenes. As shopping for picks up, some gamers begin promoting into that power. When momentum fades, worth typically follows.
That is enjoying out in actual time. Bitcoin has plunged over 50% from its October 2025 all-time excessive of $126,000, briefly touching $60,000 on February 5, 2026, the sharpest crypto sell-off for the reason that FTX collapse in 2022. Greater than $2.6 billion in leveraged positions had been liquidated in a single 24-hour interval.
Through the sell-off, giant holders had been including to their positions. Glassnode knowledge reveals that mega-whales (wallets holding 10,000+ BTC) maintained regular accumulation all through your entire decline from $90,400 to $74,500 and past. Over a 30 day window, addresses holding 1,000+ BTC have added roughly 152,000 BTC to their positions, pushing complete whale-held provide to three.2 million BTC, the very best degree since 2024 signaling large whale accumulation whereas retail panics.
For 13 years, Bitfinex has been the chosen dwelling to lots of the greatest institutional gamers who really transfer markets. Studying to trace these “whales” whenever you commerce on Bitfinex is among the strongest edges you possibly can develop as a dealer and provides one other layer to you mastering your monetary universe.
Right this moment, we’re diving into Accumulation/Distribution (A/D), the indicator that reveals you the place the true cash is flowing.
What’s Accumulation/Distribution?
The Accumulation/Distribution (A/D) Indicator is a volume-based momentum software developed by Marc Chaikin. It measures the cumulative circulation of cash into and out of an asset.
A inventory can rally on mild quantity (weak transfer) or decline on heavy quantity (robust transfer). The A/D Indicator weighs quantity by the place worth closes inside its day by day vary, revealing the true story behind worth actions.
The core idea:
- Accumulation = Shopping for stress (cash flowing in)
- Distribution = Promoting stress (cash flowing out)
The A/D line accumulates these values over time, making a operating complete that reveals whether or not sensible cash is getting into or exiting positions.
How Does It Work?
The A/D calculation makes use of this method:
Cash Circulate Multiplier = [(Close – Low) – (High – Close)] / (Excessive – Low)
Cash Circulate Quantity = Cash Circulate Multiplier × Quantity
A/D = Earlier A/D + Present Cash Circulate Quantity
What this implies in plain English:
- If worth closes within the higher portion of its vary → constructive cash circulation (accumulation)
- If worth closes within the decrease portion of its vary → damaging cash circulation (distribution)
- The nearer to the excessive, the stronger the shopping for stress
- The nearer to the low, the stronger the promoting stress
The indicator then accumulates these values, constructing a line that rises throughout accumulation and falls throughout distribution.
A/D vs OBV: What’s the Distinction?
You already know OBV from our Quantity episode. A/D works in an analogous means, each observe quantity circulation, however A/D reads deeper into every candle.
OBV (On-Stability Quantity): is binary. If the worth closes up, all quantity is bullish. The value closes down, all bearish. It treats each quantity candle as both 100% bullish or 100% bearish.
A/D (Accumulation/Distribution): A/D picks up whether or not patrons or sellers had the higher hand for a lot of the session. It seems to be at the place worth closed inside every interval’s vary, whether or not that’s a day, an hour, or no matter timeframe you’re watching:
- Shut close to the excessive = patrons received
- Shut close to the low = sellers received
- Shut within the center = it’s a tie
Why this issues:
Say BTC closes $100 increased at this time with large quantity, however spends a lot of the day getting crushed down and solely rallies on the final minute.
- OBV seems to be at that inexperienced shut and counts your entire day’s quantity as shopping for stress.
- A/D sees that worth closed close to the underside of the day’s vary regardless of ending increased. The rally was actual, however sellers managed a lot of the session.
Backside line: A/D provides you a extra correct image of who’s actually in control- the whales shopping for or the whales promoting.
The best way to Learn A/D:
Rising A/D = Whale Cash Flowing In
Shopping for stress exceeds promoting. Establishments are constructing positions, the asset has robust assist, and worth appreciation is probably going.
Falling A/D = Whale Cash Flowing Out
Promoting stress dominates. Sensible cash is exiting, revealing underlying weak spot regardless of surface-level worth motion. Draw back forward.
Flat A/D = Equilibrium
Shopping for and promoting stress are balanced. The market is undecided, typically previous a breakout in both route.
Actual Instance: BTC/USD on Bitfinex
Let’s take a look at BTC/USD day by day chart on Feb 11, 2026 with A/D and OBV loaded:
What’s taking place on the BTC/USD day by day chart (Feb 11, 2026):
- OBV: -39,068 – falling steadily since late January, steep decline
- A/D: -6,429 – dropped exhausting through the February 5 crash, however had sharp bounce and began to flatten since.
- Worth: Hovering round $67,768
OBV sees purple closes and retains subtracting quantity making a steep decline – each down day seems to be equally bearish. A/D is studying the identical periods otherwise. Though worth continues to be closing purple or flat, it’s closing within the higher half of the day by day vary extra typically, making a flatter A/D line. Sellers are nonetheless current, however they’re not dominating the total session the best way they had been every week in the past. Patrons are exhibiting up earlier than the shut.
When A/D begins flattening whereas OBV continues to be falling, it may be an early signal of quiet accumulation – the large gamers positioning at these ranges earlier than it reveals up in worth. It doesn’t imply the underside is in, and it’s not a commerce sign by itself. However one thing is shifting beneath the floor.
Key Alerts to Watch For
1. Pattern Affirmation
- Rising worth + Rising A/D = Robust uptrend with whale assist
- Falling worth + Falling A/D = Robust downtrend with whale promoting
2. Bullish Divergence
- Worth makes decrease low, A/D makes increased low
- That means: Regardless of falling costs, whales are accumulating. Reversal could also be imminent.
3. Bearish Divergence
- Worth makes increased excessive, A/D makes decrease excessive
- That means: Rally shedding steam. Regardless of increased costs, whales are distributing.
4. Breakout Affirmation
- Legitimate breakout: A/D breaks out in identical route with quantity
- False breakout: A/D diverges or stays flat
5. Quantity Spikes Throughout Consolidation
- A/D rising throughout consolidation: Quiet whale accumulation earlier than breakout up
- A/D falling throughout consolidation: Quiet whale distribution earlier than breakdown
Combining A/D with Different Indicators
A/D will get extra helpful whenever you pair it with the instruments we’ve already coated within the collection.
- A/D + RSI: RSI tells you the market is overbought or oversold. A/D tells you if quantity agrees. If RSI says oversold however A/D is rising, that’s patrons stepping in. If RSI says overbought however A/D is falling, sensible cash might already be heading for the exit.
- A/D + Shifting Averages: Worth above the 50-day MA with a rising A/D line confirms the uptrend has actual quantity behind it. Worth beneath with A/D falling confirms the downtrend. Once they disagree, the pattern could also be weaker than it seems to be.
- A/D + MACD: MACD catches momentum shifts. A/D confirms whether or not quantity helps the transfer. A bullish MACD crossover backed by rising A/D is a stronger sign than the crossover alone.
- A/D + VWAP: VWAP reveals you truthful worth. A/D reveals you what the large gamers are doing round it. Worth sitting beneath VWAP whereas A/D rises? That may very well be quiet accumulation at a reduction. Worth above VWAP whereas A/D falls? Distribution into power.
Bonus Learn: BTC/USD Weekly Chart (Feb 11, 2026)
- Worth: $67,544 – falling steeply from $126,000 in October 2025
- OBV: 579,492 – falling steeply since October, accelerating to the draw back
- A/D: 730,584 – flat to barely rising by your entire sell-off
Worth has dropped almost 50% and OBV confirms it. Weeks of purple closes are pulling the road decrease. In the event you solely checked out OBV, everybody’s promoting.
However A/D is seeing one thing else. Regardless of one of many sharpest corrections since 2022, the A/D line stayed relatively flat. Meaning inside every weekly candle, worth is constantly closing within the higher portion of its vary, even on weeks that end purple general. Patrons on Bitfinex present up inside the session, absorbing provide earlier than the week ends.
This may very well be a pause earlier than one other leg down or the early phases of a reversal. However when A/D holds regular by a 50% crash on a weekly timeframe, it’s price being attentive to. Some gamers are quietly accumulating whereas the remainder of the market panics.
Frequent Errors to Keep away from
Ignoring worth motion
A/D is a affirmation software, not a standalone sign. All the time mix it with worth construction, assist/resistance, and candlestick patterns.
Buying and selling divergences too early
Look ahead to worth affirmation earlier than getting into. A divergence alerts you to potential reversal, however worth should verify earlier than the commerce turns into legitimate.
Utilizing A/D in uneven, low-volume markets
A/D works greatest in trending markets with wholesome quantity. In sideways, illiquid situations, alerts develop into unreliable.
Forgetting timeframe context
What seems as a divergence on the 1-hour chart could also be insignificant on the day by day chart. All the time test a number of timeframes for affirmation.
Overcomplicating the setup
Hold it easy. A/D’s energy lies in its simple message: is cash flowing in or out? Don’t overcomplicate with too many further indicators.
Strive It on Bitfinex:
- Log into Bitfinex
- Select any buying and selling pair chart
- Add “Accumulation/Distribution” from the symptoms menu
- Watch how the A/D line strikes relative to cost
- Search for divergences, confirmations, and quantity circulation patterns
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