medium · Volume Price Analysis climactic
In the context of 'Stopping Volume', why does the sequence often require multiple candles (the 'supertanker' analogy) rather than a single hammer?
- The Law of Cause and Effect requires a proportionally longer cause phase to build a durable and lasting trend reversal.
- The momentum of the decline is so intense that even heavy institutional buying takes time to absorb the flood of sell orders.
- Retail participants must be lured back into the market gradually and rebuild confidence before insiders begin to distribute shares.
- Insiders need to conceal the true scale of their buying by spreading orders across several different correlated trading instruments.
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