selling climax

selling climax definition - finance
A sudden, sharp price drop on heavy trading activity that is accompanied by a large decrease in open interest. Selling climaxes occur after a long period of declining prices. This term is primarily used in technical analysis, which attempts to determine future price movements by looking at price charts.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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