Indicator

gtor514> so by compression you mean a smaller body of the candle?

 

I would say a characteristic of compression would be a "declining range" in the bars but it is somewhat subjective. I just look for the overall shape/pattern over several bars.

 

thanks to all the contributors to what looks like (the start of) an interesting discussion

 

you can use the MACD to show divergence in relation to price.

example: in this 15 min forex chart you see the audusd pair heading higher(white shaded area) towards a major resistance line while at the same time the MACD is showing falling, bearish momentum( orange line )....this is a sign of exhaustion

see next post for chart

 

Ater the fact it looks ver neat, during the "wicks" most will be stopped out..........

what value is this ?

Thanks

 

I guess we are thinking crosswise. Eggshaustion means blowout to me. Apearrently to you and everybody else it means rollover, as in what your wife does when you ask for sex.