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Nikita (SEBI RA)

28th Oct Β· SEBI-Registered Analyst

Volume Climax – Institutional Entry or Exit Signal πŸ’₯

πŸ“Š A Volume Climax occurs when trading volume spikes sharply β€” much higher than the recent average β€” often marking the end of a strong move or start of a reversal. βœ… Formation: Extremely large candle with record-high volume. Appears after an extended rally (distribution) or fall (accumulation). Candle often has a long wick showing rejection. βœ… Meaning: Indicates institutional activity β€” either booking profits or absorbing panic selling. πŸ“Œ Example: Stock surges β‚Ή720 β†’ β‚Ή850 with rising volume, suddenly huge volume spike on long wick candle closing near β‚Ή830 β†’ Volume Climax β†’ trend exhaustion signal. 🧠 Tip: Always combine with RSI or momentum divergence for confirmation.

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