Re-distribution is the mirror of re-accumulation: a trading range that forms inside a downtrend. Price pauses and consolidates while supply is redistributed, then continues lower. It is a rest stop in a falling market, not a bottom.
Why it happens
After a sharp markdown, short-covering and bargain hunters create a pause. A re-distribution range lets sellers distribute into that demand and build the cause for another leg down. The surrounding downtrend is the clue that the pause is continuation rather than a genuine bottom.
Internally it behaves like distribution — rallies fade on weak volume, tests of the highs fail, and supply reasserts — but it forms below prior structure, with lower highs still intact on the larger view. That location tilts the odds toward more downside.
Re-distribution is distribution inside a downtrend — a pause that stores fuel for the next leg down.
As with its bullish twin, re-distribution can look just like accumulation in real time. If the range starts reclaiming prior swing highs on strong demand, be willing to abandon the bearish read. Wait for confirmation before committing to continuation.