Climax

Following a protracted period of selling or buying, a point wherein market trends are retarded or discontinued.


At a selling climax, the market is characterized by a trend reversal whereby the market begins to buy stocks and prices rise. For a buying climax, the opposite occurs, and the market begins to sell, resulting in lower prices. The climax is merely the highest point of selling or buying and can be followed by many trend reversals.



Support & Resistance Basics - Learn about the key technical indicators that not only display strength and weakness but also act as buy and sell indicators

Support and Resistance Zones - Part 1 - A thorough understanding of these can help you locate important entry/exit points when the markets make the turn northward.

Support and Resistance Zones - Part 2 - In this the second part of the study of Support and Resistance Zones, let's look closer at overhead supply and draw some of the human emotion of investing into the equation.
Related Terms

Bottom

Outside Reversal

Resistance

Reversal

Support

Technical Analysis

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