medium · Volume Price Analysis climactic
A hammer candle appears at the end of a long downtrend with ultra-high volume. Following this, the market rallies slightly and then returns to the hammer's low on very low volume.
What has occurred?
- A continuation of the price waterfall on shrinking interest.
- A successful test of supply confirming accumulation.
- A failed test of demand signaling further price drops.
- A short squeeze forcing insiders to cover their positions.
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