medium · Volume Price Analysis climactic
During a 'Price Waterfall', you observe three consecutive candles with narrowing bearish bodies, increasingly deep lower wicks, and rising volume.
What is the correct technical term for this sequence and its implication?
- Stopping Volume; the bearish momentum is being absorbed
- A Selling Climax; the insiders are emptying their warehouses
- A Short Squeeze; forced liquidations are driving the price lower
- Trend Validation; the rising volume confirms the downtrend will accelerate
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