A climactic, wide-range bar with a volume spike at the end of an extended move, followed by an inability to continue. The last eager participants have entered.
How to identify it
- Extended move with accelerating candles
- Climactic bar with outsized volume
- Next bars fail to make meaningful new extremes
Entry
Enter against the move once price breaks the climactic bar midpoint.
Stop loss
Beyond the climactic extreme.
Target
The origin of the climactic leg or VWAP.
Invalidation
Price resumes and prints a fresh extreme.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your exhaustion trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.