Price fall with strong volume : When the market is hit by major negative news, price fall with strong volume, generally we call it Panic Selling (We already saw it 2-3 times in January, 2011 in our market, DSE). In this situation seller are so afraid that s/he don't mind selling their stocks at lower price. These panic selling activities are usually short-term, but they will certain have an impact to the stock trend and investors confidence.
Finally, at least 3 precondition required to say Panic Selling : 1) Market needs to hit by major negative news, 2) Huge price fall and 3) Large volume.
If anybody tells you that panic sell has been started, I hope, you will test the news by the above 3 condition. by JC
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