OPEN-SOURCE SCRIPT
Updated Exhaustion Candle Indicator (ECI)
The Exhaustion Candle Indicator (ECI) is designed to help traders identify significant exhaustion points in price action. These points can indicate potential areas of interest where price may experience a change in momentum, providing insights into both continuation and reversal setups.
Key Features:
Exhaustion Candles: ECI identifies key exhaustion points by analyzing bullish and bearish candle patterns, helping traders spot potential support and resistance areas or moments of market pause.
Customizable Alerts: Built-in alert functionality allows traders to receive notifications when an exhaustion candle forms, providing timely updates for monitoring price action.
Time-Based Filtering: The indicator analyzes price action during peak trading hours (6 AM to 11 AM New York Time), reducing noise and focusing on more impactful market moves.
How It Works:
Bullish Exhaustion: Detects potential market hesitation or demand in a downtrend by spotting bearish-to-bullish candle patterns with long upper wicks.
Bearish Exhaustion: Identifies potential resistance or supply in an uptrend by spotting bullish-to-bearish candle patterns with long lower wicks.
Usage:
This indicator is ideal for traders seeking to understand points of potential market exhaustion, useful in both continuation and reversal setups. It can be used alongside other indicators and technical analysis methods to enhance trading strategies.
Key Features:
Exhaustion Candles: ECI identifies key exhaustion points by analyzing bullish and bearish candle patterns, helping traders spot potential support and resistance areas or moments of market pause.
Customizable Alerts: Built-in alert functionality allows traders to receive notifications when an exhaustion candle forms, providing timely updates for monitoring price action.
Time-Based Filtering: The indicator analyzes price action during peak trading hours (6 AM to 11 AM New York Time), reducing noise and focusing on more impactful market moves.
How It Works:
Bullish Exhaustion: Detects potential market hesitation or demand in a downtrend by spotting bearish-to-bullish candle patterns with long upper wicks.
Bearish Exhaustion: Identifies potential resistance or supply in an uptrend by spotting bullish-to-bearish candle patterns with long lower wicks.
Usage:
This indicator is ideal for traders seeking to understand points of potential market exhaustion, useful in both continuation and reversal setups. It can be used alongside other indicators and technical analysis methods to enhance trading strategies.
Release Notes
The Exhaustion Candle Indicator (ECI) is designed to help traders identify significant exhaustion points in price action. These points can indicate potential areas of interest where price may experience a change in momentum, providing insights into both continuation and reversal setups.Key Features:
Exhaustion Candles: ECI identifies key exhaustion points by analyzing bullish and bearish candle patterns, helping traders spot potential support and resistance areas or moments of market pause.
Customizable Alerts: Built-in alert functionality allows traders to receive notifications when an exhaustion candle forms, providing timely updates for monitoring price action.
Time-Based Filtering: The indicator analyzes price action during peak trading hours (6 AM to 11 AM New York Time), reducing noise and focusing on more impactful market moves.
How It Works:
Bullish Exhaustion: Detects potential market hesitation or demand in a downtrend by spotting bearish-to-bullish candle patterns with long upper wicks.
Bearish Exhaustion: Identifies potential resistance or supply in an uptrend by spotting bullish-to-bearish candle patterns with long lower wicks.
Usage:
This indicator is ideal for traders seeking to understand points of potential market exhaustion, useful in both continuation and reversal setups. It can be used alongside other indicators and technical analysis methods to enhance trading strategies.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.