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.
A period of very high volume and sharp downward movement in the stock market. A selling climax generally signals the end of a prolonged bear market. Also called climax. Compare buying climax.