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Bearish Volume Accumulation Bearish volume accumulation (also called selling volume accumulation) is defined as a volume accumulated during the price decline. The same as with big Bearish volume surges, big Bearish volume accumulation may push indexes and stocks into oversold condition when those who wanted to sell already sold and the number of sellers who pushed the price down become exhausted.
In general when we start to see decline in the Bearish volume accumulation after its increase we may assume that the shift in supply/demand balance occurred. The number of sellers started to drop while the number of buyers willing to buy at low price started to increase. This change in the sentiment may indicate trend reversal and depending on how big the Bearish volume accumulation is we may anticipate strong or week move up. |