Re-distribution
By LuxAlgoJun 2, 2026
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: 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 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.
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