Volume Climax Reversal seeks turning points marked by extremely high volume after a strong trend.
Such climactic spikes suggest exhaustion as the last buyers or sellers rush in before momentum fades.
The strategy enters against the prior move once a large volume bar closes and price begins to retrace.
A tight percent stop protects the position, and trades exit if volume fails to drop off or price continues in the original direction.
- Entry Criteria: indicator signal
- Long/Short: Both
- Exit Criteria: stop-loss or opposite signal
- Stops: Yes, percent based
- Default Values:
- CandleType = 15 minute
- StopLoss = 2%
- Filters:
- Category: Volume
- Direction: Both
- Indicators: Volume
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Intraday
- Seasonality: No
- Neural networks: No
- Divergence: No
- Risk level: Medium