Trend Change or Retracement

[Grey1 10]

Thank-you for sharing this Grey. I appreciate your insight.

 

I would certainly agree with your statement. What measures do you suggest to measure price exhaustion?

 

Is it cumulative volume within a specific time parameter of the exhaustion price? For example, in a volume spike at a key price point if the last 3 minutes of volume exceeds the average volume by a factor of x do we have a price exhaustion?

 

thanks again,

 

Hello

 

The price exhaustion is the formation of Shooting star or hammer.. No volume what so ever...

Most algo codes look for two consecutive exhaustions with a period of not more than 60 min to open a position .. This is the most reliable signal as far as TA is concerend... Using Exhaustion theories you can also calculate the risk of trade easily ... you find two exhaustion levels ( historically) as a bench mark and your risk will be the price differencial between the bench mark and the current price... you can also compare the risk to VWAP level to adjust yous pos size

 

Grey1

[anniebee321 10]

i think the asker was refering to what the market bias or sentiment is likely to be for the day - if there is such a thing. it is the very question i have been wondering!

 

i have done a little reading regarding COT data and OPEN Interest data this may be the answer

 

i don't believe candlesticks is the only leading indicator

[anniebee321 10]

i am still newish to all of this but you could try a higher timeframe....

 

i am also looking into things like cot data volumes and open interest

 

hope this helps