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Topping Out Volume

Volume Price Analysis glossary · Climactic Price Action & Reversal Dynamics

Definition

Increasing volume on candles with deep upper wicks during an advance; indicates insiders are beginning to sell and the advance is losing momentum.

Topping Out Volume in plain English

Imagine a price that's been climbing, but now each candle shoots up high and then gets slapped back down, leaving a long 'wick' (a thin line poking out the top where price briefly went but couldn't hold). Topping-out volume is when those slap-downs happen on HEAVY trading — meaning a lot of shares are changing hands right at the highs. That heavy selling into strength is the fingerprint of big, informed players ('insiders') quietly unloading their holdings to the excited crowd still buying. It's a warning sign: the rise is running out of fuel and a turn back down may be near.

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