Trend exhaustion detector
Flags bars where a trend may be stalling; at default settings it is on for about half of all bars.
This indicator ORs five checks for a stalling trend: a new high the RSI does not confirm, volume above its 10-bar average while the last five bars rose no more than 0.5%, an RSI above 0.8 that is lower than two bars earlier, a one-minute gain above 0.5% that is smaller than the gain two bars earlier, and a close near the top of its 10-bar range while gains slow. The RSI checks read the rsi_fast input, and this chart wires that input to the closing price, so they test raw price rather than an RSI. The rsi_slow, highs and lows inputs only block the output when they are missing.
How to read it
- Markers sit on the candles where the flag is on. At defaults they cover about half of all candles, in roughly 177 separate runs a day.
- The flag is a state, not an event: a run of markers means a check keeps holding, not that a reversal is due.
- The RSI-decline check fills most of the chart. To see volume climaxes alone, use a Volume climax preset.
What it outputs
- Exhaustion flag
- On where any of the five checks holds, including a volume climax or an RSI above 0.8 that is falling. Drawn as markers on the candles.
When it fires
Fires on any bar where a check holds. On this chart the RSI-decline check is true whenever the close is below its level two bars earlier, about every other bar, so most markers say little. Volume-climax markers are the specific ones.
Settings
- momentum_threshold
- No effect. The indicator stores this value, but no check reads it, so the markers stay the same at every setting.
- volume_multiplier
- Volume must beat this multiple of the 10-bar average, which includes the tested bar. Raising it, for example to 2.5, keeps only the biggest spikes. Lowering it toward 1 marks ordinary busy bars, and well below 1 the test passes on nearly every bar.
- extension_threshold
- Position in the last 10 closes' range (0 at the low, 1 at the high) that counts as overextended. It only matters with the slowing-gain check, which needs a one-minute gain above 0.5%. Raising it narrows that case; lowering it widens it.
- divergence_window
- Length of the RSI history. Below 4 it switches off the RSI-decline check, which fills most of the chart at default. From 6 up, the momentum-divergence check can run, but on this chart it never fires because the RSI inputs are the price.
Pitfalls
- On this chart both RSI inputs are wired to the closing price, not an RSI. The RSI checks therefore test raw price, and the divergence check can never fire.
- At defaults the markers cover about half of all candles, so a flag that common carries little information until the RSI-decline check is switched off.
- The volume average includes the tested bar, so a multiplier of 2.5 needs about three times the other nine bars' average, not 2.5 times.