NWZ Update-last two bars have had their true range filled (gap filled) in for educational purposes.
Fridays bar was an attempt at a reversal, on lower than average volume (which is good).
For it to be considered successful Mondays bar should be up.
Thursdays and Fridays bar (merged) together, form a reversal or shakeout of sorts.
In this case price is rammed down to encourage (panic) those holders with weak hands (generally those in a losing position, who will sell into any decent rally and potentially thwart the ease of movement to the upside at some time in the future).
Volume is high on the downside leg, as the stock which is shaken out is bought (absorbed) near the lows of the day.
This shakeout when successful, buys all the supply within its range and leaves behind a temporary 'supply vacuum'.
(Supply Vacuum - normally, day to day in any market there are a certain amount of buyers and sellers which together form an equilibrium. However, when (in this case) all the sellers have temporarily been removed (their stock bought), the equilibrium can briefly be lost, as there are now very few sellers at all at this level, which can form a temporary supply vacuum. This can allow price to easily be sucked higher with very little buying)
Then on Friday, with the stock facing little normal selling pressure, price moved higher easily (with any remaining supply easily being mopped up - bought).
It also closed at the day highs, and importantly above the high of Thursday's bar.
