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Before I get into today's article which will be an expansion and amplification of this, to recap - the key things you want to be looking for in spotting these exhaustion and climax reversal bars are; 1) a bar that is much larger than the previous price action and ideally the largest bar in the move 2) it occurs atnear a key support or resistance level, or after breaking a key supportresistance level 3) it occurs after several bars have been trending in an impulsive fashion in one direction Although there are other many subtle clues you can look for to amplify the possibility of these climax and exhaustion reversal bars, these are the three main ones you want to see in the price action to look for a trading opportunity.
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