Climactic Activity On Volatile Short-Term Indicators


Yes! It's Carl. I thought it was about time that I contribute to the new DecisionPoint blog on I plan to periodically blog here when I find something of particular interest that I'd like to share, similar to the Chart Spotlight on

If you look at the volatile or ultra-short-term indicator chart and the Advance-Decline breadth and volume chart in the DP Chart Gallery on, you will spot recent climactic activity.

First look at the Participation Index - UP. I've annotated climactic readings and the corresponding price action. 

Screen Shot 2014-03-07 at 4.48.19 PM

I've done the same to the Net Breadth and Volume. (Note: for clarity, I have adapted the Advance-Decline Breadth and Volume chart from the DP Chart Gallery to exclude the A-D lines)


In September the climax marked a price top. In October and February the climax came out of a price bottom and signalled the beginning of a substantial rally. The most recent climax looks more like the ones in November and December, where there were price advances but they were smaller and rolled over into consolidating moves.

Climactic moves can indicate an initiation to higher prices or an exhaustion leading to lower prices. Using past moves for comparison and evaluating the indicators in the DP Chart Gallery can help us determine whether the climax is an intiation or exhaustion.

Watching the windsock,

Carl Swenlin
About the author: is a veteran technical analyst who has been actively engaged in market analysis since 1981. A pioneer in the creation of online technical resources, he was president and founder of, one of the premier market timing and technical analysis websites on the web. DecisionPoint specializes in stock market indicators and charting. Since DecisionPoint merged with in 2013, Carl has served a consulting technical analyst and blog contributor. Learn More
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