Volume climax reversal
A candle with far more volume than usual makes a new low but closes off it. That is often the last wave of panic selling. If the next candle confirms, price tends to bounce.
Watch it play out
Replay plays a setup this strategy already finished and stops so you can call it. Live watches for the next one on Bitcoin (BTC-USD, 1-minute candles). Either way a setup is marked only when a candle closes, then it's locked and plays out to its target or its stop. Nothing to trade here.
How the live chart applies the rules
- 1-minute candles. The chart runs every strategy on 1-minute Bitcoin candles from Coinbase, whatever timeframe the strategy page suggests. Times are New York time.
- Closed candles only. Levels, triggers and stops are read when a candle closes. Entry is that candle's close.
- One setup at a time. While a setup is playing out, the same strategy doesn't start another.
- Sensible risk only. A setup counts only if its stop is between a quarter and 6 times the average candle range (ATR 14) from entry (wider for session-range strategies), and its target is at least 0.75R away.
- How a setup ends. At its target or its stop. If one candle touches both, the stop counts. A setup also ends at any exit its page names, and after 120 candles (longer for trend and session strategies) if nothing is hit.
- Replays. A replay plays the latest setup this strategy finished on the live chart's recent history, sped up. It's the same setup the live chart confirmed, with the same entry, stop and result. If the strategy hasn't finished one recently, the replay uses example candles and says so.
- The trading day. A day runs 6:00 PM to 6:00 PM ET, like futures. VWAP restarts at 6:00 PM, and "yesterday" means the last full trading day.
How Volume climax reversal works
- 1Where's the level?
- The low of a climax candle: at least 2.5 times the average volume of the last 20 candles, at the lowest point of those 20 candles (the high for shorts).
- 2What's the trigger?
- The climax candle closes in the upper half of its range, and the next candle closes green above the climax candle's close (the reverse for shorts).
- 3Where is it wrong?
- Just below the climax candle's low.
- 4Where does it end?
- 2 times the risk.
- Markets
- Futures, Stocks, Forex, Crypto
- Timeframes
- 1m to 1h
- Sessions
- Any liquid session
- Also called
- Selling climax, Buying climax, Capitulation candle
What it means
A candle with far more volume than usual makes a new low but closes off it. That is often the last wave of panic selling. If the next candle confirms, price tends to bounce.
How it is confirmed without repainting
Volume and the climax candle's range are read after it has closed, so a spike that fades before the close does not count.
When it fails
Heavy volume that keeps coming on the next candles. One big candle is not always the last one.
Education only. Prop Firm Duel does not provide trade signals or financial advice. This page explains how the strategy is commonly defined. Past results never guarantee future results.
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