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Distribution Line - When trading volumes of a specific stock are monitored and analyzed, on of the technical indicators is the distribution line. If the volume of sales is increasing, and were charted on a wall graph, then the line indicating this would be rising. The opposite is true if the volume were decreasing. This indicator is used along with the theory that an increase in trading of a given stock would foretell and increase in the price of the same stock. That would help decide whether or not it was a good time to buy. |
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