medium · Volume Price Analysis climactic
A trader sees three candidate 'selling climax' bars over four weeks of a decline, each a wide down bar on rising volume. The first has the widest spread and highest volume but closes on its low; the second is narrower on slightly lower volume closing mid-range; the third is the narrowest on the LOWEST volume of the three, closing near its high.
In Coulling's exhaustion logic, which sequence best signals that the trend's selling pressure is genuinely drying up?
- The first bar alone, because the absolute peak recorded in both volume and spread is, by strict Coulling definition, always the singular moment of true capitulation and total exhaustion
- The progression itself — declining volume and narrowing spreads with improving closes across the three bars — because diminishing effort to push price lower is the true sign supply is exhausting
- The second bar, because a mid-range close occurring on still-elevated volume is regarded as the textbook single signature that, all by itself, fully completes a genuine selling climax event here
- The third bar taken in isolation, since only the highest closing price of the three bars ultimately matters, and the two earlier bars become entirely irrelevant the moment a higher close finally appears
Sign up free to see the explanation and track your rank →
More Volume Price Analysis climactic practice
- What is the specific VPA principle demonstrated here?
- Which of the following is the defining characteristic of 'Stopping Volume' at the end of a
- Which specific 'braking' signal is characterized by narrowing bodies and rising upper wick
- What is the specific 'Topping Out' signature here?
- After a strong three-week advance, a futures contract prints… — How should a practitioner
- A stock is rising on a Daily chart. For three days, the volume bars have been rising, but
- What is the signature here?
- What is the trade implication?