Market Exhaustion Indicator...
Get an edge by seeing areas where the market is exhibiting exhaustion
- Analyzes Order Flow
- Looks at Delta
- Interprets Point of Control
- Utilizes Market Imbalances
- And much MUCH more...
Hi, it's Mike from Orderflows and I am excited to tell you about the Market Exhaustion Indicator.
The Market Exhaustion indicator shows you areas where the traders are not only not interested in buying or selling, but also when aggressive traders start appearing and trading in the opposite direction. Exhaustion can occur at swing highs/lows or as a move in underway. To learn more, keep reading...
The Market Exhaustion indicator shows you areas where the traders are not only not interested in buying or selling, but also when aggressive traders start appearing and trading in the opposite direction. Exhaustion can occur at swing highs/lows or as a move in underway. To learn more, keep reading...
Market exhaustion is a trading term most traders misinterpret. They think market exhaustion occurs only when the market rejects a high or a low.
For example:
For example:
But do you really know that is market exhaustion? It could be George Soros or the Bill Gates Foundation sitting there with a huge order providing support to the market. In that case is it really exhaustion or something else? I think it is the case that we see all too often with technical analysts. Fit the narrative around a chart pattern.
Most traders talk about market exhaustion without understanding what they are talking about. The most common mistake a lot of traders make is by thinking all prices are equal which through analyzing order we know not all traded prices are the same. The markets are an auction process, moving up to find sellers and moving down to find buyers. At each price level different volume is traded depending on what traders think the value of the asset is.
Another mistake traders make is thinking that market exhaustion is only a reversal signal. Market exhaustion can occur in a move up as traders are rejecting lower prices or in a move down as traders are rejecting higher prices. For a move up to continue you want to see aggressive buyers firmly in control with weak counter aggressive selling in the bar. The move will be stronger when both of those conditions are met.
If a market is moving higher, the reason is not just because aggressive buyers are in control. It is also due to the fact that aggressive sellers are not interested in selling at lower prices. For a move down to continue you want to see aggressive sellers firmly in control with weak counter aggressive buying in the bar.
Most traders talk about market exhaustion without understanding what they are talking about. The most common mistake a lot of traders make is by thinking all prices are equal which through analyzing order we know not all traded prices are the same. The markets are an auction process, moving up to find sellers and moving down to find buyers. At each price level different volume is traded depending on what traders think the value of the asset is.
Another mistake traders make is thinking that market exhaustion is only a reversal signal. Market exhaustion can occur in a move up as traders are rejecting lower prices or in a move down as traders are rejecting higher prices. For a move up to continue you want to see aggressive buyers firmly in control with weak counter aggressive selling in the bar. The move will be stronger when both of those conditions are met.
If a market is moving higher, the reason is not just because aggressive buyers are in control. It is also due to the fact that aggressive sellers are not interested in selling at lower prices. For a move down to continue you want to see aggressive sellers firmly in control with weak counter aggressive buying in the bar.
I have isolated 4 types of market exhaustion:
1. Bullish Reversal Market Exhaustion - occurs at swing lows. Indicates a market turning point.
2. Bearish Reversal Market Exhaustion - occurs at swing highs. Indicates a market turning point.
3. Bullish Momentum Market Exhaustion - occurs in a move up. Indicates the market will continue in its direction.
4. Bearish Momentum Market Exhaustion - occurs in a move down. Indicates the market will continue in its direction.
I have created the Market Exhaustion indicator to highlight to the trader when Market Exhaustion is occurring.
Let's take a look at the 4 types of market exhaustion:
1. A market exhibits bullish reversal market exhaustion after a move down when the volume traded by the aggressive sellers diminishes and the volume traded by the aggressive buyers grows.
2. Bearish Reversal Market Exhaustion - occurs at swing highs. Indicates a market turning point.
3. Bullish Momentum Market Exhaustion - occurs in a move up. Indicates the market will continue in its direction.
4. Bearish Momentum Market Exhaustion - occurs in a move down. Indicates the market will continue in its direction.
I have created the Market Exhaustion indicator to highlight to the trader when Market Exhaustion is occurring.
Let's take a look at the 4 types of market exhaustion:
1. A market exhibits bullish reversal market exhaustion after a move down when the volume traded by the aggressive sellers diminishes and the volume traded by the aggressive buyers grows.
2. A market exhibits bearish reversal market exhaustion after a move up when the volume traded by the aggressive buyers diminishes and volume traded by aggressive sellers grows.
3. A market exhibits bullish momentum market exhaustion in a move up when aggressive buyers are present and aggressive sellers are selling less.
4. A market exhibits bearish momentum market exhaustion in a move up when aggressive sellers are present and aggressive buyers are buying less.
I have created the Market Exhaustion indicator to highlight to the trader when Market Exhaustion is occurring.
Are You Making This Mistake?
Price based indicators such as RSI and Stochastics attempt to measure when market exhaustion occurs by trying to determine if a market is overbought or oversold. What they fail to realize is there is a difference between overbought/oversold and market exhaustion.
If you have ever looked at a market that is "overbought" you know that it can stay in "overbought" mode for quite a while. Those are times you should be buying. Markets continue moves due to traders activities, not lines crossing other lines.
If you have ever looked at a market that is "overbought" you know that it can stay in "overbought" mode for quite a while. Those are times you should be buying. Markets continue moves due to traders activities, not lines crossing other lines.
Think of the term exhaustion. If you have ever run a race against a group of others you notice that after a while some traders start getting tired. They get exhausted and they drop out of the race. The same is true in a trend. If the trend is up, sellers begin to drop out but buyers are often still buying. That is why a market goes overbought to more overbought to more overbought. Sellers are dropping out but the buying is still active.
If you know sellers are declining on an move up, what do you think the trade would be?
Or if you knew buyers are declining on a down move, what do you think the trade would be?
If you know sellers are declining on an move up, what do you think the trade would be?
Or if you knew buyers are declining on a down move, what do you think the trade would be?
The chart above shows everything wrong with RSI. Every user of RSI says to buy when the RSI is coming up from below the 30 line and crosses above it. But you can see the market quickly reversed and dropped below the 30 line again.
Why did that happen? Because the market is exhibiting market exhaustion in a trend.
Why did that happen? Because the market is exhibiting market exhaustion in a trend.
The Market Exhaustion indicator runs on NinjaTrader 8 and works on an Orderflows Trader chart as well as a normal candlestick chart.
Works on normal candlestick charts as well!
The Market Exhaustion indicator is an amazing piece of software that uses all the building blocks of order flow: Delta, Point of Control and Market Imbalances. But it also analyzes other parts of order flow such as volume on the bid and volume on the offer and it also takes into account swing activity.
Market Exhaustion indicator is for traders who want to jump in and jump out of the market while capturing the most of the move as possible. It is designed for short term day traders.
Market Exhaustion indicator is for traders who want to jump in and jump out of the market while capturing the most of the move as possible. It is designed for short term day traders.
Special Feature - Trade Entry Signal
We have added the Trade Entry Signal function to Market Exhaustion Indicator which will help improve your trading results by keeping you out of bad traded.
This Trade Entry Signal will show you which signals to take by drawing the Triangle Up for a buy or the Triangle Down for a sell AFTER the bar is closed and price is moving in the direction of the trade. This will keep you out of sideways moving markets and times when the order flow does not follow through - when the trade immediately moves against you because the order flow conditions have changed.
For example, with the Trade Entry Signal OFF, you can see there were 6 trades with 3 winners and 3 losers.
This Trade Entry Signal will show you which signals to take by drawing the Triangle Up for a buy or the Triangle Down for a sell AFTER the bar is closed and price is moving in the direction of the trade. This will keep you out of sideways moving markets and times when the order flow does not follow through - when the trade immediately moves against you because the order flow conditions have changed.
For example, with the Trade Entry Signal OFF, you can see there were 6 trades with 3 winners and 3 losers.
50% winning trades is ok, but as a trader we always want to improve our results.
Now, the way I read order flow is to at least wait for the bar to close and then look for the market to start to move in the direction of the trade setup. As soon as that move starts, the indicator will plot the buy signal.
Here is the same chart with the Trade Entry Signal turned ON. There are 5 trades.
Now, the way I read order flow is to at least wait for the bar to close and then look for the market to start to move in the direction of the trade setup. As soon as that move starts, the indicator will plot the buy signal.
Here is the same chart with the Trade Entry Signal turned ON. There are 5 trades.
Having the Trade Entry Signal function is like having me standing next to you, pointing to your screen and telling you which trades to take and which trades to pass.
Every trading book tells you to cut your losses short and let your winners run. With the Trade Entry Signal you can eliminate some of the trades that would have stopped you out BEFORE you even take them! How sweet is that?
Imagine how much better your performance would be if you could eliminate 15-20% of the losing trades you have taken in the past. For some traders it will be the difference between SUCCESS and FAILURE.
Stack the odds in your favor by taking trades that have a better chance of WINNING.
Every trading book tells you to cut your losses short and let your winners run. With the Trade Entry Signal you can eliminate some of the trades that would have stopped you out BEFORE you even take them! How sweet is that?
Imagine how much better your performance would be if you could eliminate 15-20% of the losing trades you have taken in the past. For some traders it will be the difference between SUCCESS and FAILURE.
Stack the odds in your favor by taking trades that have a better chance of WINNING.
As with any method of trading you must use prudent stop and risk management. I will tell you right now, this is not a 100% winning Holy Grail trading system. There is no such thing as a Holy Grail in trading. What the Market Exhaustion indicator does is find low risk trades, that have high profit potential. Some trades will get stopped out. That is the reality of any trading method. Losses happen. The difference between losing traders is winning traders is that winning traders take small losses while letting the winning trades make their run.
So what are you waiting for? Click the button below and I will see you on the inside...
So what are you waiting for? Click the button below and I will see you on the inside...
You can get access to the Market Exhaustion indicator today for just $300.
Clicking on the order link will redirect you to our secure payment processor page on PayPal.
Please allow 3 to 6 hours for us to process your order. We will email you all the necessary files as soon as your order is processed.
Please allow 3 to 6 hours for us to process your order. We will email you all the necessary files as soon as your order is processed.
14 Day Money Back Guarantee
Copyright 2019 - Orderflows.com - All rights reserved
Disclaimer and Risk Disclosure:
CFTC Rules 4.41:
Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Disclaimer:
This presentation is for educational and informational purposes only and should not be considered a solicitation to buy or sell a futures contract or make any other type of investment decision. Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Risk Disclosure:
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
CFTC Rules 4.41:
Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Disclaimer:
This presentation is for educational and informational purposes only and should not be considered a solicitation to buy or sell a futures contract or make any other type of investment decision. Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Risk Disclosure:
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
Thanks for subscribing. Share your unique referral link to get points to win prizes..
Loading..
