medium · Volume Price Analysis climactic
A stock has declined from $64 to$41. On 'Day 1' of a potential accumulation, a candle forms with a deep lower wick and ultra-high volume, but the body is narrow.
What does this 'Effort vs. Result' anomaly reveal about market-maker behavior?
- The market is in a distribution phase and a second price waterfall is imminent.
- Insiders have withdrawn and the market is falling under its own weight.
- Insiders are starting to absorb the selling pressure (Stopping Volume).
- This is a 'No Demand' bar signaling a continuation of the bearish trend.
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