$FOLKS recently exhibited an interesting phenomenon on the daily chart: trading volume has significantly increased, but the price bars are still small. This kind of mismatch can have two meanings, depending on the market stage.

If the market is rising, this is called volume expansion with stagnation, which is usually a bearish signal. But if such a pattern appears during a decline, it may indicate that selling pressure is about to exhaust, and a reversal could be imminent.

From a trading perspective, the logic of bottom-fishing during a decline is straightforward—enter when the price reaches the lowest point, then add to your position every time it drops by 10 points. If you feel that a 10-point move isn't deep enough, you can adjust to 20 points before adding again, depending on your risk tolerance and capital plan.

A detail worth noting is that the position at 5.6 on the left side was once a clear low point. Such historical support levels often come into play again. The market works this way—repetitive patterns and key price levels often provide second or even third chances.