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medium · Volume Price Analysis Climactic Price Action & Reversals

A currency pair is in a downtrend. It produces three consecutive candles with narrowing bodies and increasing volume, ending in a high-volume hammer.

This sequence is known as:

  1. A price waterfall, signaling an acceleration of the bearish trend.
  2. No Supply bars, confirming that sellers have left the market.
  3. A failed test of supply, indicating more accumulation is needed.
  4. Stopping volume, showing the progressive braking of bearish momentum.

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