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Stopping Volume

Volume Price Analysis glossary · Climactic Price Action & Reversal Dynamics

Definition

Increasing volume on candles with deep lower wicks during a decline; indicates insiders are beginning to buy and stop the decline.

Stopping Volume in plain English

Picture a falling price finally hitting a floor. On the chart you see candles with long "lower wicks" — the price stabbed way down but got bought back up before the candle closed — and the volume (number of shares traded) is high. That combination means the big "insider" buyers are stepping in and absorbing all the selling, which stops the decline in its tracks. It's like a beach ball being pushed underwater: the deep dip is real, but a strong hand keeps shoving it back to the surface.

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