KomFi. Academy

Shakeout

Volume Price Analysis glossary · Support, Resistance & Breakout Mechanics

Definition

A deeper variant of Spring — a violent dip below support, often on high volume, deliberately clearing stops and weak holders before markup.

Shakeout in plain English

A shakeout is a sudden, nasty plunge below a support level (a price floor buyers usually defend), often on heavy volume — and it's frequently done on purpose by big players. The goal is to scare nervous small traders into selling and to trigger their automatic stop-loss orders, cheaply shaking loose shares before price rockets upward (markup). It's like a bus driver hitting the brakes hard so the standing passengers who aren't holding on tumble off, leaving more room for those who stayed. A Spring is the milder version; a shakeout is the same trick, just more violent and deeper.

Learn these first

Sign up free: all 101 Volume Price Analysis terms as flashcards, plus practice questions with full explanations →

Related Volume Price Analysis terms

Volume Price Analysis practice questions · Volume Price Analysis flashcards · Volume Price Analysis study guide