Hi,
Second time I am starting a thread . I have been studying exhaustion lately, if I could find a method to see it, as I believe I could dramatically improve my trading. Let me attempt to explain what I mean.
I consider exhaustion in the order flow point of view. Meaning simply this...(using a bullish example). When all those who would like to buy have done so and there is no one (in the long run ) left to buy. You can use that zest to get a sell.
Why do I want to be able to see this? Since I believe that when the buying has exhausted (on a very long term or short term basis) that price will probably reverse even for a while until new price swings attract other participants.
Thus I am looking for a means to identify that condition in the price structure. I have looked at Big candles and some price patterns such as hammers and shooting begins (affectionately known here as pin bars) but do no see anything constant. Likewise I have looked at oscillator divergence and again see nothing that's consistent enough to be called a border.
So my question for you is that: If are you willing to talk about here how you spot it?