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Nikita (SEBI RA)

29th Oct · SEBI-Registered Analyst

Volume–Price Climax Reversal 🔄 (Exhaustion and Turnaround)

📊 A Volume–Price Climax Reversal marks the exact turning point of a trend, identified by a huge volume spike followed by an opposite directional candle. ✅ Formation: Extreme volume (3× or more of average). Large candle with long wick rejecting the trend direction. Followed by a sharp reversal candle next session. ✅ Meaning: Panic phase ends → trend reverses. 📌 Example: Stock in downtrend hits ₹510 with record volume, long lower wick candle closes ₹530 → next session big green closes ₹560 → Volume–Price Climax Reversal → bullish reversal confirmed. 🧠 Tip: Perfect for identifying market bottoms and tops if aligned with RSI divergence.

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