hard · Volume Price Analysis

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?

  1. Stopping Volume; the bearish momentum is being absorbed
  2. A Selling Climax; the insiders are emptying their warehouses
  3. A Short Squeeze; forced liquidations are driving the price lower
  4. Trend Validation; the rising volume confirms the downtrend will accelerate

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