• user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:8963d0d434dfb8e1d4a63f18659f6e4d' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h1>Climactic Volume & How It Identifies Tops and Bottoms</h1>', created = 1526901171, expire = 1526987571, headers = '', serialized = 0 WHERE cid = '1:8963d0d434dfb8e1d4a63f18659f6e4d' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:593afcddca670bcee430f180ff45d4c6' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>What is Climactic Volume?</h2> <p>As we have discussed many times before, <a title=\"Volume Analysis\" href=\"/technical-analysis/volume-analysis.html\">volume analysis</a> is the single most important factor in helping a trader determine if there is true buying or selling activity going on within a stock. This article is going to discuss the most important volume indication, <b>climactic volume</b>. This is a large increase in volume that occurs after a strong move higher or lower and gives the trader an insight into the greed or fear that exists in the marketplace. Climactic volume is a great tool in locating market tops and bottoms on any timeframe, from the intraday charts to monthly charts.</p> <p>There is a common misconception that climactic volume in the direction of trend is considered to be a sign of continuation. It is actually the opposite; climactic volume indicates panic buying or selling. After a strong move higher, an explosion in volume indicates that buyers are buying to avoid missing further price appreciation. This is where the amateurs get caught and where the professionals take advantage. Sit on your hands when you see this type of action and resist the urge to &quot;get in&quot; on the action. Remember, professionals buy into fear and sell into greed. That is the only way they can make money; to do the opposite of what the general public is doing.</p> <h2>How much Volume is considered Climactic?</h2> <p>Typically, when you see volume spike anywhere from 200% to 300% above the average 20 period volume; this would be considered climactic.</p> <p>One other note about climactic volume; like any other tool, this one cannot be isolated and traded on its own. You want to keep an eye out for candlestick reversal patterns such as the <a title=\"Candlestick Stars\" href=\"/technical-analysis/candlestick-charts-stars.html\">shooting star</a>. Also, keep <a title=\"Fibonacci Day Trading\" href=\"/technical-analysis/fibonacci-day-trading.html\">Fibonacci levels</a> and the tape in mind when analyzing the setup.</p> <h2>Climactic Volume Charting Example</h2> <p><span class=\"inline inline-none\"><img src=\"http://www.mysmp.com/sites/default/files/images/climactic-volume-example.png\" alt=\"Climactic Volume\" title=\"Climactic Volume\" class=\"image image-_original \" width=\"448\" height=\"447\" /><span class=\"caption\" style=\"width: 446px;\"><strong>Climactic Volume</strong></span></span><br /> <br /> &nbsp;</p><br /><div class=\"image-clear\"></div>', created = 1526901171, expire = 1526987571, headers = '', serialized = 0 WHERE cid = '1:593afcddca670bcee430f180ff45d4c6' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:2fda152348bc4ae73408bf0b82608e9a' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide to navigating through the markets.</p><p>Tim is in the Timers Digest Top 10 Rankings for his newsletter and is the Author of \"The Secret Science of Price and Volume”. Ord also contributes to the Stocks &amp; Commodities Magazine.</p>', created = 1526901171, expire = 1526987571, headers = '', serialized = 0 WHERE cid = '1:2fda152348bc4ae73408bf0b82608e9a' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:4dd69529abed14a5c1c8f3ba7e22f8eb' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for every symbol on the Nasdaq, NYSE, and AMEX.</p><p>Use the fast forward and pause features to analyze your trading decisions with more precision.</p>', created = 1526901171, expire = 1526987571, headers = '', serialized = 0 WHERE cid = '1:4dd69529abed14a5c1c8f3ba7e22f8eb' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:151e49b034b3ac8a98c1331980da8b69' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>Related Videos</h2>', created = 1526901171, expire = 1526987571, headers = '', serialized = 0 WHERE cid = '1:151e49b034b3ac8a98c1331980da8b69' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:e6ff5fe7efa34d641d697991ec512c61' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2>Related Articles</h2>', created = 1526901171, expire = 1526987571, headers = '', serialized = 0 WHERE cid = '1:e6ff5fe7efa34d641d697991ec512c61' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '4:64dc950e564b7bb494892459d2858add' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<div class=\"left\">\n <p>copyright &copy; 2011 MYSMP.com. All rights reserved.</p>\n <a href=\"/\">Home</a> • <a href=\"/advertise\">Advertise</a> • <a href=\"/sitemap\">Sitemap</a> • <a href=\"/privacy-policy\">Privacy Policy</a>\n</div>\n\n<div class=\"right\">\n <p>Designed &amp; Developed by: bxCreative.com: <a target=\"_blank\" href=\"http://bxcreative.com\">Web design</a></p>\n</div>', created = 1526901171, expire = 1526987571, headers = '', serialized = 0 WHERE cid = '4:64dc950e564b7bb494892459d2858add' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:ef414e50ef3bcd60831c79a8ccac7f37' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<h2 class=\"pane-title\"><a href=\"/investment-articles\">Investment Articles</a></h2><h2 class=\"pane-title\"><a href=\"/premium-services\">Premium Services</a></h2> <h2 class=\"pane-title\"><a href=\"/free-offers\">Free Offers</a></h2> <h2 class=\"pane-title\"><a href=\"/video\">Videos</a></h2>', created = 1526901171, expire = 1526987571, headers = '', serialized = 0 WHERE cid = '1:ef414e50ef3bcd60831c79a8ccac7f37' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:7ab206dca588aa9858fab14b55f27503' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<p>16192 Coastal Highway<br />\nLewes, Delaware 19958</p>\n', created = 1526901171, expire = 1526987571, headers = '', serialized = 0 WHERE cid = '1:7ab206dca588aa9858fab14b55f27503' in /var/www/html/mysmp/includes/cache.inc on line 109.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: SELECT data, created, headers, expire, serialized FROM cache_filter WHERE cid = '1:fb9bc3d8197c3f70b5a896cc8bae29d6' in /var/www/html/mysmp/includes/cache.inc on line 26.
  • user warning: Table './mysmp_drupal/cache_filter' is marked as crashed and should be repaired query: UPDATE cache_filter SET data = '<a href=\"/\"><img src=\"/sites/all/themes/bx/images/logo.png\" /></a>', created = 1526901171, expire = 1526987571, headers = '', serialized = 0 WHERE cid = '1:fb9bc3d8197c3f70b5a896cc8bae29d6' in /var/www/html/mysmp/includes/cache.inc on line 109.

Climactic Volume & How It Identifies Tops and Bottoms

What is Climactic Volume?

As we have discussed many times before, volume analysis is the single most important factor in helping a trader determine if there is true buying or selling activity going on within a stock. This article is going to discuss the most important volume indication, climactic volume. This is a large increase in volume that occurs after a strong move higher or lower and gives the trader an insight into the greed or fear that exists in the marketplace. Climactic volume is a great tool in locating market tops and bottoms on any timeframe, from the intraday charts to monthly charts.

There is a common misconception that climactic volume in the direction of trend is considered to be a sign of continuation. It is actually the opposite; climactic volume indicates panic buying or selling. After a strong move higher, an explosion in volume indicates that buyers are buying to avoid missing further price appreciation. This is where the amateurs get caught and where the professionals take advantage. Sit on your hands when you see this type of action and resist the urge to "get in" on the action. Remember, professionals buy into fear and sell into greed. That is the only way they can make money; to do the opposite of what the general public is doing.

How much Volume is considered Climactic?

Typically, when you see volume spike anywhere from 200% to 300% above the average 20 period volume; this would be considered climactic.

One other note about climactic volume; like any other tool, this one cannot be isolated and traded on its own. You want to keep an eye out for candlestick reversal patterns such as the shooting star. Also, keep Fibonacci levels and the tape in mind when analyzing the setup.

Climactic Volume Charting Example

Climactic VolumeClimactic Volume

 


Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Tradingsim.com
Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

Send this article to a friend.

Enter multiple addresses on separate lines or separate them with commas.