Discussion in 'Trading' started by Chuck Krug, Aug 18, 2011.
What indicator can be used to gauge the exhaustion of intraday moves?
Volume is the simplest one. There are others more subtle.
Also,cooler of your PC or temperature indicator to pc
Don't know of an indicator, since I don't use them but you could use price action. Say for an upmove some sighs of exhaustion may include...
1.) compression in price as it moves up.
2.) long upper wicks of the candle.
There are a few others that could help but if you have an indicator that could identify these characteristics it could be used.
argent> could you elaborate a bit more on volume?
less volume as the upmove exhausts.
gtor514> what do you mean by compression in price?
3 Bar Reversal with long wicks and with high volume
Forget indicators, they are derivative of price and have no value.
Imagine recording music off a radio station using the old eight track cassettes, that's pretty much what indicators are.
Same stuff just of much lesser quality.
Price will move up and as it approaches a resistance line for instance, the highs will become less high and the range of bars will become smaller and smaller. The price action over several bars will resemble an arc that just collapses.
freakofnature> so for an exhaustion of an upmove you look for 3 bars with long upper wicks and relatively high volume?
what do you look for in exhaustion in a downmove?
freakofnature> btw: i know of 20 and 30year veteran traders that use indicator(s) as part of their arsenal
Separate names with a comma.