medium · Volume Price Analysis climactic
During the distribution phase at the top of a rally, the price makes a final push to a new high, forming a shooting star candle on ultra-high volume.
In terms of Supply and Demand, how is this 'Selling Climax' interpreted?
- It is a sign of overwhelming genuine demand that will inevitably lead to an explosive breakout well above resistance.
- It represents the transfer of inventory from strong institutional hands to weak retail hands as supply absorbs all remaining demand.
- It indicates the start of a completely fresh new markup phase as insiders begin aggressively buying into this new breakout.
- It is a successful, low-effort test of demand proving conclusively that the path higher remains entirely clear of significant sellers.
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