Distribution Days
A Distribution day is where volume increases compared to the previous day and either:
Closing price moves lower, or
After trending upwards, the advance stalls and there is little or no increase in closing price.
one further qualification: exclude any day that has a long tail - where closing price is in the top half of the day's range. The example below shows a potential market top for the All Ordinaries (ASX). Exclude the last day indicated. Price closed in the top half of the equivolume bar, suggesting an influx of buyers rather than sustained selling pressure.