# Exhaustion Bar

Exhaustion Bar is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Detects exhaustion bars: a fresh 20-bar extreme after a 2 ATR directional move, printed on a range at least 1.5x the recent average (optionally with a 1.5x volume spike), yet closing within the opposite 25% of the bar. Wick-tip levels extend forward as stop and invalidation references, next-bar confirmation is optional, and six alerts cover detection, confirmation and invalidation.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 21, 2026.
- Access: free.
- Concepts: [Exhaustion Bar](https://www.luxalgo.com/library/concept/exhaustion-bar/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=j5z00558xy596v270cvhy382
- Page: https://www.luxalgo.com/library/indicator/exhaustion-bar/

**Exhaustion Bar** codifies the maximum-effort, minimal-result candle into checks that must all pass: an extended prior move of the required ATR multiple, a fresh extreme of the lookback, a range well beyond the recent average (optionally with a participation spike) and a close near the bar's opposite extreme, by default back inside the prior bars' range so the excursion is left as a rejected wick. The [exhaustion bar](https://www.luxalgo.com/library/concept/exhaustion-bar/) is only hunted where there is something to exhaust.

## How to Trade the Exhaustion Bar?

- **Pattern label**: marks the qualifying candle; its tooltip itemizes range and volume ratios, close location and the prior move.
- **Extreme levels**: each wick tip extends forward. The natural stop sits beyond it, and a close accepted beyond it turns the level dotted and fires the invalidation alert.
- **Confirmation**: optionally require the next bar's close beyond the midpoint or opposite extreme before marking: later but substantially cleaner.

## Exhaustion Bar Settings

- **Trend Lookback** (default 20): bars measuring the prior move and its extreme.
- **Minimum Prior Move (ATR)** (default 2) with **ATR Length** (default 14): how stretched the trend must be (0 = direction only).
- **Effort Average Length** (default 20): baseline for the range and volume checks.
- **Wide Range Multiplier** (default 1.5): required multiple of the recent average range.
- **Require Volume Spike** (default on) with **Volume Spike Multiplier** (default 1.5): skipped without volume data.
- **Close Location %** (default 25): how near the opposite extreme the close must finish.
- **Close Back Inside Prior Range** (default on) and **Require Gap Open** (default off): the rejected-probe and gap-open variants.
- **Confirmation** (default None): Close Beyond Midpoint or Close Beyond Opposite Extreme.
- Display: **Extreme Levels** (on), **Show Last Levels** (default 8), **Show Pattern Labels** (on), **Highlight Pattern Candles** (off).

## Frequently Asked Questions

### Exhaustion bar or exhaustion gap: what is the difference?

The same ending told by different vehicles: the [Exhaustion Gap build](https://www.luxalgo.com/library/indicator/exhaustion-gap/) reads a late-trend gap that quickly fills, while the exhaustion bar packs effort and failure into a single candle's anatomy. Extended moves can print both.

### Where does the stop belong?

Beyond the pattern's wick tip, the level this build extends forward. Acceptance beyond that wick contradicts the rejection the read is built on, so the same line doubles as invalidation.

### Should I require confirmation?

The raw bar signals earliest; requiring the next close marks patterns one bar later and filters the ones that immediately fail. Choose by how much you value earlier entries over cleaner signals.

## Related indicators

- [Candle 2 Closure](https://www.luxalgo.com/library/indicator/candle-2-closure/) (Two-bar Reversal): markdown at https://www.luxalgo.com/library/indicator/candle-2-closure.md
- [Long Wick Detector](https://www.luxalgo.com/library/indicator/long-wick-detector/) (Pin Bar): markdown at https://www.luxalgo.com/library/indicator/long-wick-detector.md
- [The Strat](https://www.luxalgo.com/library/indicator/the-strat/) (Inside Bar): markdown at https://www.luxalgo.com/library/indicator/the-strat.md
- [N Bar Reversal Detector](https://www.luxalgo.com/library/indicator/n-bar-reversal-detector/) (Three-bar Reversal): markdown at https://www.luxalgo.com/library/indicator/n-bar-reversal-detector.md
- [Wide-range Bar](https://www.luxalgo.com/library/indicator/wide-range-bar/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/wide-range-bar.md
- [Engulfing Bar](https://www.luxalgo.com/library/indicator/engulfing-bar/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/engulfing-bar.md
- [CBC Flip with Targets and Filters](https://www.luxalgo.com/library/indicator/cbc-flip-with-targets-and-filters/) (Two-bar Reversal): markdown at https://www.luxalgo.com/library/indicator/cbc-flip-with-targets-and-filters.md
- [Three Bar Reversal Pattern](https://www.luxalgo.com/library/indicator/three-bar-reversal-pattern/) (Three-bar Reversal): markdown at https://www.luxalgo.com/library/indicator/three-bar-reversal-pattern.md

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Source: https://www.luxalgo.com/library/indicator/exhaustion-bar/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
