Climactic Volume Indicator Reviews and Pricing
Climactic volume is a large increase in volume that occurs after a strong move higher or lower and gives the trader an insight into the greed or fear that exists in the marketplace most commonly reflect by small retail traders like you and me. Climactic volume is a great tool in locating trend pullbacks (retracements) or full reversals on any timeframe, from the intraday charts to monthly charts.
There is a common misconception that climactic volume in the direction of a trend is considered to be a sign of the trend’s continuation. It is actually the opposite. Climactic volume usually indicates panic buying or selling. After a strong move higher, an explosion in volume indicates that buyers are buying to avoid missing further price appreciation. This is where the amateurs get caught and where the professionals take advantage.
When we see Climactic Volume, its time to sit on our hands and wait for just the right time to act. We’ll resist the urge to "get in" on the action. Instead, we’ll track when the professionals (HFT’s, Quants, Hedge Funds, etc.) are processing orders through the exchanges faster than us little retail traders have the ability to process orders, Also, we’ll wait until we see that momentum has diverged from the direction that price is moving. At the junction of these indicators, we have an excellent opportunity for a successful trade setup.
Indicator Parameter Settings
As indicated in the image above, Climactic Volume bars will have an outline printed around the bar. This outline is user definable with the following parameters:
The outline can be moved in front of the bars, or behind the bars. Click one time on the Climactic Volume bar outline (you will not see anything that lets you know that the outline is selected, but it is), hold the shift key down, and roll your mouse wheel forward or backwards to move the lines to the front or back layer of the chart image.
Climactic Volume is calculated using the average of the last X bars (lookback). If the volume exceeds the average of the last X bars (lookback) by the PercentThreshold, then an outline will be drawn around the bar.
LookbackType
Series – Uses every bar in the lookback period
Every bar in the lookback period will be included in the measurement and averaging of volume regardless of whether the bar is a Climactic Volume bar or not.
NON_CV_ONLY – Will skip any bars that are showing Climactic Volume in the lookback.
Only bars that are not Climactic Volume bars will be included in the calculations to determine if the current bar meets the criteria to become a Climactic Volume bar. If there are both non CV bars and CV bars in the lookback period, the non CV bars will be counted, the CV bars will be skipped, and the count will continue of the non CV bars until reaching the total lookback bars specified.
Filters
Certain times of the day may generate a large number of Climactic Volume bars. An example would be during the open of Equities trading (9:30 am eastern US time) or a scheduled news event. Using military time, you can exclude up to 3 different time period ranges from printing a signal.
Use -1 in each field if you do not want to use the exclusion field.
Min Avg Vol Signal
Climactic Volume is measuring the current bars volume against previous bar volume to determine how far above average is the current bar volume. If above our threshold percent level, then a signal will print. This can generate a very large number of signals during slow time in the trading markets. For example, if the previous bars average volume is 10, and the current bar has a volume of 21, then its possible that the 21 volume bar would be considered a Climactic Volume bar even though the volume is still negligible. To exclude these very low volume times, you can set a minimum average volume threshold level. No signals will be produced unless the volume average of the lookback bars is equal to or above the percentage level set in the Min Avg Vol Signal parameter setting.
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