Who this entry is for — The euphoria at highs that often precedes a distribution range: everyone buys, large operators sell.
Source: Wyckoff Analytics; Wyckoff Schematics (Pruden, MTA 2006).
Prerequisites
Distribution phases A–E (phase A), Selling Climax (SC) (symmetric).
Definition
In plain terms — Great news, everyone wants in, volume explodes at highs — but large operators use that demand to sell their positions. Often the beginning of the end of the rally.
The Buying Climax (BC) occurs when buying force reaches a climax: urgent public buying filled by professional interests near a top. Volume and spread rise markedly.
Technical reading
| Feature | Typical BC |
|---|---|
| Volume | Very high |
| Spread | Wide to the upside |
| Context | Mature uptrend, often earnings/positive news |
| Close | May be in the lower half of the bar |
| Follow-up | AR (Automatic Reaction), then ST |
Phase A sequence (distribution)
- PSY — Preliminary Supply
- BC — demand climax
- AR — post-BC correction (range support)
- ST — test of the BC area (reduced volume if the top is confirmed)
Example — A stock up +15% in a day on an earnings beat, volume 5× the average, closing below the mid-bar: a suspect BC — possible start of distribution, not a strength signal to chase.
BC vs healthy rally
| BC (distribution) | Healthy rally (markup) | |
|---|---|---|
| Position | Top / mature range | Post-accumulation, SOS |
| Volume on reaction | Increases | Decreases |
| Structure | Lower highs afterward | Higher highs |
Symmetric
Selling Climax (SC) in accumulation.
Summary card
| Abbr. | BC |
| Phase | A (distribution) |
| Symmetric | SC |
| After | AR → ST → phase B |