medium · Volume Price Analysis validation
A stock has been in a 'price waterfall' for ten days. A candle forms with an ultra-wide bearish spread, but it features a long lower wick and record-breaking high volume.
What is this?
- A successful test of demand that clearly indicates higher prices are likely ahead.
- A 'No Demand' bar that firmly confirms the continuation of the existing bearish trend.
- The start of a second, more aggressive markdown leg lower.
- A buying climax, where insiders are absorbing the final retail panic.
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