However, the price moves back with a liquidity spike instead of making a flag or retracement after a pole formation. This represents that the market was not able to hold the capped price and then jumped back in. After this liquidity spike, you will see price compression to the capped price to fill the hidden orders of institutions. So when the market hits the capped price, due to liquidity and compression zone, the price shoots back to the origin of compression to balance the market. This price pattern is called the CanCan Pattern in forex trading.
Analyze the image below. Price first broke the previous resistance zone with high momentum, showing buyers are in control. You can also check that the price has already been overbought. So, the price breaks back into the pole instead of continuing the bullish trend. This tells us that there are many sellers at this capped price, and they want to sell. After that, the price made a compression up, consuming all the demand. It means it's preparing for a big bearish Impulsive wave. Usually, when a compression up zone forms, the price consumes the demand and increases with time. So, after filling the pending sell orders from the capped price, there is no demand left on the way because the price has already consumed all the demand. That's why the price shoots down straight to the origin of compression.