medium · Volume Price Analysis
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 demand that will lead to an explosive breakout above the resistance level.
- 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 markup phase as insiders aggressively buy the breakout.
- It is a successful test of demand proving the path higher is clear of any significant sellers.
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