medium · Volume Price Analysis
What is the primary difference between 'Stopping Volume' and 'Buying Climax' in the VPA market cycle?
- Stopping volume occurs at the top of a rally, whereas a buying climax instead occurs down at the bottom of a decline.
- A buying climax is identified using tick volume, while stopping volume instead requires actual exchange-reported contract volume.
- Stopping volume represents a deceptive 'trap down' move, while a buying climax is considered a genuine, lasting reversal.
- Stopping volume is the initial braking action, while a buying climax is the final, high-volume surge that ends the decline.
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