medium · Volume Price Analysis validation
During a sustained downtrend, a narrow-spread bearish candle forms on ultra-high volume that is 3 times the recent average.
What does this anomaly suggest?
- The market has entered a price waterfall decline and will likely fall much further.
- Bearish momentum is accelerating sharply as more aggressive sellers enter the falling market.
- Insiders are absorbing the retail selling pressure, potentially starting accumulation.
- The existing downtrend is simply being validated by the sharp rise in transaction activity levels.
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