medium · Volume Price Analysis
A Spring candle forms with a narrow body and a very long lower wick. The volume is high, but the following candle is a wide-spread down candle that breaks the Spring's low on even higher volume.
What does this sequence signify?
- This is Stopping Volume that has finally come to a halt and will lead to an immediate short squeeze.
- The insiders are 'testing' the Spring, and the high volume proves that they are still buying heavily.
- A 'Double Spring' which is twice as bullish as a single Spring because even more sellers were trapped.
- A failed Spring and a transition into a price waterfall, indicating the accumulation phase was unsuccessful and lower prices are coming.
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