Trends/Volume and money flow

Volume climax

The highest volume in a long stretch, usually with a wide price bar.

Volume and money flowBest on 1Y, 3YAlso called climactic volume
Volume climax diagramIllustration of the volume climax shape. It is a sketch, not real price data.Volume
Illustration of the volume climax shape. It is a sketch, not real price data.

What it shows

A volume climax is a bar whose volume is the highest in the last 250 bars (about a year) and whose range is also well above average. It marks the busiest day in a long time.

It is a fact about extreme activity. Climaxes appear near both highs and lows, and their meaning depends on what comes before and after.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. Find the highest volume of the last 250 bars.
  2. Mark the bar if today's volume equals it.
  3. Check the range is at least 1.5× the 20-bar average range.
  4. Show the date and the price bar.

Starting values: Lookback 250 bars; Range 1.5× average. These are proposed and will be tuned on real price data before launch.

How to read it

  • The tall gold bar is the climax.
  • The price bar above it is wide.
  • Volume before and after is lower.

Status labels you may see

LabelWhat it means
Climax todayVolume is the highest in 250 bars.
Climax recentlyWithin the last 10 bars.
NoneNo climax in the last 10 bars.

What cancels it

Nothing cancels it.

What traders check next

  • Direction of the price move before it.
  • What price did over the next few bars.
  • News.

Limits

  • Occurs at both highs and lows.
  • Rare, so little data to study.
  • Index events can create false climaxes.

Try it in forecastviz

  • Open any ticker and choose Volume and money flow → Volume climax in the left menu.
  • Switch between 1Y, 3Y to see how the picture changes.
  • Compare with Volume spike and Volume dry-up on the same chart.

Questions

Does a climax mark a turn?

Some do and some do not. We make no claim.

How often does it occur?

Rarely, a few times a year.

Related trends

Further reading

  • Murphy, Technical Analysis of the Financial Markets
  • Granville, Granville's New Key to Stock Market Profits
  • Pring, Technical Analysis Explained
  • Achelis, Technical Analysis from A to Z

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.