Selling/buying climaxes are in the Ending Action (EA) category, which means it’s a powerful enough countervailing force to stop the down/up trend. The only way this could happen is for the big interests to come into the market and overwhelm the weak handed sellers. This is what causes EA to occur. They are powerful indicators on all time frames…. (for subscribers).
Shorting/Buying Climaxes, Retests, Distribution
Buying climaxes, distribution, retests – these are the things which go into shorting stocks, along with the fundamental “setup”. And at a minimum, even if we don’t trade it, recognizing these characteristics are very helpful...