Page 51 - A Complete Guide to Volume Price Analysis: Read the book then read the market

The selling climax is the 'last hurrah' before the insiders take the market lower. It is the culmination of all their efforts, and is the point at which the
warehouse is almost empty and requires one last big effort to force the market higher, drawing in those nervous traders and speculators who have
been waiting and waiting for the right time to jump in, and can finally wait no longer. They give in to the fear of missing out, and buy.

This happens two or three times on high volume with the market closing back at the open, and at the end of the distribution phase. Following the
selling climax, the market then breaks lower, and fast. This tranche of buyers, along with all the others, is then trapped at this price level, as the
insiders move the market away from this region and back down the helter skelter to begin the process again.

Let's look at a typical example of what we might see as the selling climax marks the end of the distribution phase, and we can think of it in terms of
fireworks – this is a firework display which marks the end of the event!

Once again, Fig 5.16 is simply a schematic of what to expect in the selling climax. Here the insiders have taken the market to their target level, at
which they are selling inventory at retail prices, to happy buyers who believe that this market is going to the moon.

Fig 5.16 The Selling Climax – Firework Show
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