Exhaustion Volume Spike [forexobroker]Not all volume spikes are created equal. A volume spike early in a trend signals continuation -- fresh money fueling the move. A volume spike late in a trend, with fading momentum, signals exhaustion -- the last gasp before reversal. This indicator classifies every volume spike and generates reversal signals on exhaustion events.
HOW IT WORKS
The indicator tracks trend direction (EMA20 vs EMA50), trend duration, ADX peak and decline, and momentum state. When a volume spike occurs, it classifies it:
Continuation Spike: Early in trend, ADX rising, momentum strong. Colored blue. Trend is healthy. Exhaustion Spike: Late in trend (20+ bars), ADX declining from peak, momentum waning. Colored amber. Reversal likely.
Buy signals fire after bearish exhaustion (sellers are spent). Sell signals fire after bullish exhaustion (buyers are spent).
FEATURES
Dual spike classification: continuation (blue) vs exhaustion (amber)
ADX peak tracking with configurable decline threshold
Trend duration monitoring with minimum bars requirement
Momentum divergence analysis
Continuation spikes shown as blue border boxes (informational)
Exhaustion signals with 3-layer neon glow
EXHAUST labels on reversal signals
Real-time dashboard: ADX, ADX peak, trend bars, trend direction, spike counts
Volume confirmation filter
11 alert conditions covering both spike types
SIGNAL LOGIC
Exhaustion classification requires ALL of:
Volume exceeds SMA by the spike multiplier
Trend has lasted at least the minimum bars
ADX has declined from its peak by the threshold amount
Momentum is waning (diverging from trend direction)
Bar must be confirmed (closed)
Then: Bullish signal = bearish trend exhaustion. Bearish signal = bullish trend exhaustion.
RECOMMENDED SETTINGS
Defaults are optimized for 4H and Daily charts. For 1H charts, reduce Min Bars in Trend to 15. For crypto, increase Volume Spike Multiplier to 2.5-3.0 due to higher baseline volatility. ADX Decline Threshold of 2.0 works across most instruments.
HOW TO USE
Blue boxes mark continuation spikes -- the trend is healthy, consider trend-following entries
Amber EXHAUST labels mark exhaustion reversals -- look for counter-trend entries
Monitor the ADX and Trend Bars in the dashboard for context
When ADX Peak is much higher than current ADX, the trend is mature
Combine exhaustion signals with support/resistance for precise entries
LIMITATIONS
Exhaustion spikes do not always lead to immediate reversals; price may consolidate first
ADX is inherently lagging; the decline may be detected after the optimal reversal point
Momentum analysis uses simple comparison which may produce false readings in choppy markets
Volume data quality varies between exchanges; crypto exchanges may show misleading volume
Classification is probabilistic, not deterministic
Signals are confirmed on bar close only
This indicator is a technical analysis tool and does not constitute financial advice
Past performance is not indicative of future results
Pine Script® Indikator






















