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Rick

Climactic Top

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Climactic Top

During an uptrend, a sharp advance accompanied by volume much higher than normal during a rally, often indicating a last gasp of the trend, followed by a reversal, correction, or extended period of stagnation.

This 60-minute chart of Rada Electronics is an example of a climactic top. Following on the heels of a possible uptrend, the price explodes, increasing approximately 40%. The volume, which is normally between 50,000 to 100,000 increases to almost 400,000 shares an hour. However, within a day or two, the price returns to one and a quarter.

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