medium · Volume Price Analysis support-resistance

An ES trader sees a wide-spread down candle on low volume at the open of the New York session. The next candle is a hammer with 2.5x average volume.

What is the professional intent?

  1. The hammer qualifies as a 'No Supply' bar, confirming that the selling pressure has ended.
  2. The trend remains firmly bearish because market makers are still actively selling into the bid.
  3. The market is entering a full price waterfall, driven onward by that wide initial opening move.
  4. Insiders marked the price down to shake out weak holders and are now aggressively accumulating.

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