# Exhaustion Gap

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

Flags gaps printing late in an extended trend (after 20 bars on one side of a 50-period average with 1.5 ATR of stretch, on climactic volume and range) as exhaustion candidates, then grades them: a fill within 5 bars confirms exhaustion, an opposite gap confirms an island, and staying open re-labels the gap as continuation behavior. Nine alerts track every stage.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 15, 2026.
- Access: free.
- Concepts: [Exhaustion Gap](https://www.luxalgo.com/library/concept/exhaustion-gap/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=l9s77at88fzmd08ilkjvvqlt
- Page: https://www.luxalgo.com/library/indicator/exhaustion-gap/

**Exhaustion Gap** treats a late-trend gap as a hypothesis and lets price grade it. A true gap (no bar overlap) becomes a candidate only when the trend is mature and stretched and the gap bar prints climactic range and volume: an [exhaustion gap](https://www.luxalgo.com/library/concept/exhaustion-gap/) arrives as the final rush, not the launch. Each candidate's zone is boxed and watched: a full fill confirms exhaustion, an opposite gap confirms an island, and one still open at expiry is re-labeled continuation behavior.

## How to Trade the Exhaustion Gap?

- **Candidate**: an up gap late in a stretched uptrend implies bearish exhaustion, a down gap in a decline the mirror; the tooltip itemizes gap size, range, volume, stretch and trend age.
- **Re-entry**: a close back inside the zone is the early evidence, alerted before any full fill.
- **Resolution**: Filled and Island outcomes recolor the zone solid; Expired fades it to dotted neutral, with follow-through recorded in the tooltip.

## Exhaustion Gap Settings

- **Minimum Gap Size (ATR)** (default 0) with **ATR Length** (default 14): 0 accepts every true gap.
- **Confirmation Window (bars)** (default 5): bars allowed for a fill or island. Classical treatments expect quick fills.
- **Trend MA Type** (default SMA) and **Trend MA Length** (default 50): the average defining the trend.
- **Minimum Trend Age (bars)** (default 20): closes spent continuously on the trend side before the gap.
- **Minimum Stretch From MA (ATR)** (default 1.5): required distance of the close from the average.
- **Minimum Prior Same-Direction Gaps** (default 0) with **Prior Gaps Lookback (bars)** (default 50): optional earlier-gaps requirement.
- **Require Volume Spike** (default on) with **Volume Spike Multiplier** (default 1.5) and **Volume Average Length** (default 20), plus **Minimum Bar Range (ATR)** (default 1.25): the climactic checks.
- Display: **Gap Zones** and **Pattern Labels** (on), **Trend MA** (off).

## Frequently Asked Questions

### How do I tell an exhaustion gap from a runaway gap?

At the moment it prints, often you cannot, which is why candidates are graded rather than declared. A [Runaway Gap](https://www.luxalgo.com/library/indicator/runaway-gap/) appears mid-trend and holds; here the difference is graded as behavior: quick fill means exhaustion, staying open means continuation.

### What is the island outcome?

An opposite gap across the same zone strands the bars in between: the island reversal, the strongest classical confirmation. It has its own label state and alerts.

### Why did an obvious gap never become a candidate?

Most gaps are meant to fail the gates: too little trend age, not enough stretch, or a quiet, narrow gap bar. Loosening the stretch or disabling the volume spike widens the net at the cost of flagging ordinary gaps.

## Related indicators

- [Gap Fill Breakouts](https://www.luxalgo.com/library/indicator/gap-fill-breakouts/) (Gap Fill): markdown at https://www.luxalgo.com/library/indicator/gap-fill-breakouts.md
- [Breakaway Fair Value Gaps](https://www.luxalgo.com/library/indicator/breakaway-fair-value-gaps/) (Breakaway Gap): markdown at https://www.luxalgo.com/library/indicator/breakaway-fair-value-gaps.md
- [Session Gap Fill](https://www.luxalgo.com/library/indicator/session-gap-fill/) (Gap Fill): markdown at https://www.luxalgo.com/library/indicator/session-gap-fill.md
- [Rising & Falling Window Signals](https://www.luxalgo.com/library/indicator/rising-falling-window-signals/) (Common Gap): markdown at https://www.luxalgo.com/library/indicator/rising-falling-window-signals.md
- [Runaway Gap](https://www.luxalgo.com/library/indicator/runaway-gap/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/runaway-gap.md
- [Ascending Base](https://www.luxalgo.com/library/indicator/ascending-base/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/ascending-base.md
- [On-neck / In-neck / Thrusting](https://www.luxalgo.com/library/indicator/on-neck-in-neck-thrusting/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/on-neck-in-neck-thrusting.md
- [Rising/falling Three Methods](https://www.luxalgo.com/library/indicator/rising-falling-three-methods/) (Chart & Candlestick Patterns): markdown at https://www.luxalgo.com/library/indicator/rising-falling-three-methods.md

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