Washout

A washout is a fast, high-volume flush to the downside that runs stops, exhausts sellers, and often marks at least a short-term low. The move is indiscriminate: everyone with a resting stop or a weak stomach sells into the same few minutes.

The signature is velocity plus a volume spike plus a quick reclaim. When a stock drops several percent in minutes on 3x volume and then recovers most of the flush, the supply has been consumed; the sellers who wanted out are out. Dip buyers who wait for washouts get worse-looking entries at better prices than buyers who nibble on every small pullback.