YOUR FREE TRADING SYSTEM: http://www.netpicks.com/tjgiveaway1
Donchian talks about looking for a volume climax especially when the markets have made extended runs. They can be tricky because there are times that what looks like a climax, is really renewed interest in the instrument you are watching.
Ensuring that price has advanced for a length of time can be a variable in your trading plan that you need to see before thinking that the climax may signal a change of state of the market.
Trading Tip: Just because the market “blows off”, it does not necessarily mean that a reversal is taking place. Markets rarely immediately reverse but tend to balance out before changing direction.
http://www.netpicks.com/chart-no-volume-indicator/ - READ MORE
Licence : All Rights Reserved