Who this entry is for — The downside «capitulation» that often marks the end of panic and the start of an accumulation range.
Source: Wyckoff Analytics; Wyckoff Schematics (Pruden, MTA 2006).
Prerequisites
Accumulation phases A–E (phase A), Effort/result law.
Definition
In plain terms — Huge panic selling absorbed by those with capital: record volume, wide bar, but the stock often closes well off the low — a sign institutional buyers are stepping in.
The Selling Climax (SC) is the point where selling pressure and spread usually climax after a prolonged downtrend. Panic public selling is absorbed by large operators near a bottom.
Technical reading
| Feature | Typical SC |
|---|---|
| Volume | Very high |
| Spread | Wide to the downside |
| Close | Often in the upper half of the bar |
| Context | Mature downtrend, accumulation phase A |
| Follow-up | AR (Automatic Rally), then ST |
Effort vs result law: maximum effort, limited net result = possible supply → demand reversal.
Phase A sequence
- PS — Preliminary Support (first demand signs)
- SC — selling climax
- AR — automatic rally (defines range resistance)
- ST — Secondary Test (volume reduced vs SC)
The SC and ST lows plus the AR high define the trading range.
Caution — If the ST falls below the SC, wait for new lows or a prolonged consolidation. The SC is not guaranteed: some ranges end without a dramatic climax.
Symmetric
Buying Climax (BC) in distribution — demand climax at highs.
Summary card
| Abbr. | SC |
| Phase | A (accumulation) |
| Law | Effort/result |
| After | AR → ST → phase B |