medium · Volume Price Analysis wyckoff-laws
How does an 'engulfing bearish' candle relate to the start of a markdown when it appears at the end of a distribution phase?
- It indicates that a preceding 'No Supply' test at the range low has now failed outright.
- It shows that insiders are stop-hunting retail buyers just above the range ceiling.
- It signals that sellers have completely overwhelmed the previous session's buyers
- It is a neutral signal unless it is immediately followed by a bullish hammer candle.
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