Selling climax
A sharp fall on very heavy volume that is supposed to mark the bottom, because everyone who wanted to sell has finally sold.
In plain English
The story goes: panic peaks, the last nervous holders dump their shares, and with no sellers left the price can only go up. Traders call it capitulation.
Uncle Gary explains
Uncle Gary finally sells the stock he has held since 2007, loudly, in front of everyone, swearing he will never invest again. According to the theory, that was the bottom. According to our data, it might just be Tuesday.
Why it matters for your money
In our test, stocks that fell on very heavy volume did worse afterwards than stocks that fell quietly, not better. Heavy selling looked more like the start of bad news than the end.
Where we tested it
Related terms
All glossary terms. Educational content, not financial advice.