A volume-based indicator that identifies potential trend exhaustion points through buying and selling climax events by analyzing significant volume spikes compared to historical averages.
Explore complementary indicator rolesHow it works
The indicator calculates a moving average of volume over a specified period, typically 20 candles, to establish a baseline volume level. It then flags potential climax events when current volume exceeds a defined multiplier, which by default is 2.0 times the average volume.
For a Buying Climax (BC), the system identifies a green candle with significantly higher volume, marked by an orange triangle above the bar. For a Selling Climax (SC), it detects a red candle with exceptionally high volume, represented by a fuchsia triangle below the bar.
Why it may be useful
Volume climax events provide critical insights into potential trend reversals and market sentiment, helping traders identify moments of extreme buying or selling pressure. By highlighting these significant volume spikes, the indicator can reveal potential exhaustion points where a trend might be losing momentum or preparing to change direction.
These signals are particularly valuable because they capture psychological market dynamics, showing points where traders might be capitulating or experiencing extreme emotions. The ability to recognize these climax events can help traders make more informed decisions about potential entry or exit points in their trading strategies.
When to explore it
This indicator is most effective in markets with clear trending behavior, where volume can provide meaningful insights into potential trend reversals. It works well across various timeframes, from short-term scalping to longer-term swing trading, making it versatile for different trading styles and market conditions.
Traders should ideally use this signal in conjunction with other technical analysis tools, such as support and resistance levels, to confirm potential trend changes. It is particularly useful during periods of significant market movement, where volume can provide additional context to price action and help identify potential turning points in the market.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
