Down candles ultra high volume relative to other candles , closing off the lows is buyers / profit taking
The second candle there is called a shake out ... price drives lower only to find buyer ... most call it a doji , but when these have ultra high volume associated with them it is buyers entering the market.
However due to higher times I am looking for sell oppertunities, things like an up bar into new highs but on ultra low vol, or a doji on an up move that has ultra high vol ( sellers) or a wide spread up candle that has ultra high vol (sellers 90% of time) that has next bar down ...
volume spread analsysis is the study of volume and candle spread ( open to close) realtionship
for example ES had a nice double top on daily at 1124 last week ... i noted chart in my vsa thread , the up moves were on ultra low vol , 2 x no demand bars on the daily and an easy money maker (es is a nd p futures). When you see a set up like this options and futures can be played for large profit gains.
Blogging daily now at www.volume.zone