Float Turnover Formations A Graphic Collection

Float Turnover In A Correction
(Also known as Distribution & Re-Accumulation)

The theory is that those who bought at lower prices sell to take profits.  The selling causes the stock's price to go sideways which is a called distribution.  Once the ownership has changed and demand continues to be strong there are fewer and fewer shares available and this causes the prices to go higher. Many times the sideways corrective action corresponds exactly with the stock's float turnover.  There are several types of sideways formations.  Some see the top float channel drop a little like the one below. 

Study a collection of float turnover formations at our New Archive Table.