# Re-distribution

Re-distribution is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Follows pauses inside established downtrends as candidate re-distribution, filing weak-rally evidence (lower highs, stalled rallies at resistance, upthrusts and contracting up-move volume) on a live dashboard. Confirmation requires a breakdown holding 3 closes below the range low; sustained acceptance above the range high invalidates the thesis as accumulation. Six alerts track the sequence.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 2, 2026.
- Access: free.
- Concepts: [Re-distribution](https://www.luxalgo.com/library/concept/re-distribution/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=gov5bnsk96dzpypjqsvluxg3
- Page: https://www.luxalgo.com/library/indicator/re-distribution/

**Re-distribution** watches the pause that lets a downtrend reload. A stall low ending a qualifying ATR-normalized decline opens a candidate range, and the build files the weak-rally evidence behind [re-distribution](https://www.luxalgo.com/library/concept/re-distribution/): lower highs, quick rejections from the resistance zone, failed upthrusts, rallies running lighter than declines, contracting up-move volume. The verdict waits for a breakdown that holds; acceptance above the range kills the thesis and argues accumulation.

## How to Trade the Re-distribution?

- **Range detected**: the pause qualifies as a trading range inside the downtrend; the checklist goes live, the bullish base alternative still open.
- **Upthrust**: a poke above resistance failing within the recovery window prints an Upthrust label, the bearish mirror of a spring, heavily weighted.
- **Re-distribution confirmed**: the breakdown holds the required closes below the range low, the label noting breakdown volume against the pre-break average.
- **Acceptance above**: closes held above resistance beyond the upthrust window invalidate. The read flips to accumulation.

## Re-distribution Settings

- **Downtrend Lookback (Bars)** (default 50), **Minimum Decline (xATR)** (default 2.0), **ATR Length** (default 14): the qualifying decline.
- **Swing Length** (default 5): pivot strength of the boundary swings.
- **Minimum Range Duration (Bars)** (default 15): a short upward drift is bear-flag territory, not a range.
- **Upthrust Recovery Window (Bars)** (default 5): how long price may close above resistance and still snap back.
- **Breakdown Hold (Bars)** (default 3) and **Volume Average Length** (default 20): confirmation and volume baseline.
- **Resistance Zone (% of Range Height)** (default 25) and **Rally Rejection Window (Bars)** (default 5): what counts as a rejected rally.
- **Show Dashboard** (on), **Position** (Top Right), **Size** (Small); **Show Range Box**, **Lower-High Markers**, **Event Labels** (on), **Range Fill Transparency** (default 90).

## Frequently Asked Questions

### How does this relate to the Upthrust indicator?

The dedicated [Upthrust](https://www.luxalgo.com/library/indicator/upthrust/) build isolates the failure above resistance as its own event; here they are one evidence line, weighed with lower highs, stalled rallies and volume asymmetry toward a diagnosis only a held breakdown settles.

### Can it call re-distribution before the breakdown?

No. The score leans, but no verdict is issued early; the same behavior can precede a base, so acceptance above is tracked with equal care.

### What happens without volume data?

Structural checks still run (lower highs, stalled rallies, upthrusts, close position), and the evidence total drops from six to four; the breakdown volume note is skipped.

## Related indicators

- [Retest & Break Setup](https://www.luxalgo.com/library/indicator/retest-break-setup/) (Breakout-pullback-continuation): markdown at https://www.luxalgo.com/library/indicator/retest-break-setup.md
- [Range Detector](https://www.luxalgo.com/library/indicator/range-detector/) (Trading Range): markdown at https://www.luxalgo.com/library/indicator/range-detector.md
- [False Breakout](https://www.luxalgo.com/library/indicator/false-breakout/) (Market Structure): markdown at https://www.luxalgo.com/library/indicator/false-breakout.md
- [Fibonacci Ranges (Real-Time)](https://www.luxalgo.com/library/indicator/fibonacci-ranges-real-time/) (Trading Range): markdown at https://www.luxalgo.com/library/indicator/fibonacci-ranges-real-time.md
- [Range Intelligence Suite](https://www.luxalgo.com/library/indicator/range-intelligence-suite/) (Trading Range): markdown at https://www.luxalgo.com/library/indicator/range-intelligence-suite.md
- [Parabolic Phase](https://www.luxalgo.com/library/indicator/parabolic-phase/) (Market Structure): markdown at https://www.luxalgo.com/library/indicator/parabolic-phase.md
- [Bart Pattern](https://www.luxalgo.com/library/indicator/bart-pattern/) (Trading Range): markdown at https://www.luxalgo.com/library/indicator/bart-pattern.md
- [Range Average Retest Model](https://www.luxalgo.com/library/indicator/range-average-retest-model/) (Trading Range): markdown at https://www.luxalgo.com/library/indicator/range-average-retest-model.md

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Source: https://www.luxalgo.com/library/indicator/re-distribution/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
