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 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?

Where does the stop belong?

Should I require confirmation?