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.
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