Advanced
Context
After a sustained decline, price sells off sharply on heavy activity and then fails to continue lower cleanly.
Illustrative campaign snapshot 34: the structure is synthetic and designed only to isolate the evidence sequence for selling climax.
Evidence to read
- wide down move with very high relative volume
- close improves or immediate continuation stalls
- subsequent action starts to define a range
Expert read
A selling climax may mark the start of accumulation work if supply is later tested successfully.
Alternative interpretation
It may be only a pause in markdown if rallies remain weak and lows are lost.
Confirmation required
- automatic rally followed by secondary test
- lower supply on the test
- improved closes after the test
Invalidation signs
- new lows on expanding supply
- weak rally unable to hold midpoint
- continued markdown structure
Common traps
buying the climax without test
confusing panic volume with confirmed strength
using a stop so wide that risk becomes unacceptable
Source frame
Wyckoff/VSA educational frame: background first, effort versus result second, confirmation third, risk and invalidation always explicit.