Wyckoff trading method, page-1324

Yep that's right,
this is a decent style of trading for an initial position in a stock (even better for an ETF, like Gold which moves around quite a bit), but not necessarily a full position straight away (scaling in, building up to a full position after it breaks out & the trade starts to work is probably a better strategy), as you just don't know how long it will take for the stock to actually breakout, and don't want too much money tied up in a position stuck within a trading range for an unknown period of time.

Part of the accumulation or re-accumulation process process when the stock is trading in a range (apart from the actual accumulation of stock), is to remove as much of the stock from holders who are likely to sell into a rally as possible (in particular the short term traders, and those who are holding at a loss). This is because those potential sellers just make it more difficult, and more expensive, to mark up the price successfully. So it is worthwhile spending enough time (if nessesary) moving the price up and down within the range, frustrating holders in an effort to remove as much of this stock as possible. At this time (during range trading) there may also be several methods being used to leave a bad 'gut feel' with the stock at the same time (price action, print media, social media, TV, internet etc.), as this is another legitimate tactic used to remove potential supply waiting above.

Just try to make sure there is some sort of evidence that an actual accumulation going on, and it is not just retailers playing amongst themselves.....this isn't always easy......but generally I initially look for potentially strong primary bars with very high volume, and/or trading which suggests possible profession support, including the features we often discuss about accumulation or absorption zones.

cheers