medium · Volume Price Analysis

In the context of 'Stopping Volume', why does the sequence often require multiple candles (the 'supertanker' analogy) rather than a single hammer?

  1. The Law of Cause and Effect requires a proportionally longer cause phase to build a durable and lasting trend reversal.
  2. The momentum of the decline is so intense that even heavy institutional buying takes time to absorb the flood of sell orders.
  3. Retail participants must be lured back into the market gradually and rebuild confidence before insiders begin to distribute shares.
  4. Insiders need to conceal the true scale of their buying by spreading orders across several different correlated trading instruments.

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