XAUUSD5mVolume Exhaustion
Free · open-sourceVolume Exhaustion

Volume Exhaustion Entry

Volume Exhaustion Indicator for TradingView

Five red candles in a row is not exhaustion. It is five red candles.

The idea

A sequence has to prove participation, lose efficiency and then get answered by a real opposite shift — only then is it a setup.

Free & open-source · All markets, all timeframes · Signals confirmed on bar close; HTF structure uses completed bars · Forex/CFD volume may be tick volume · A structured volume-analysis and review tool, not a signal service, not financial advice, and no performance guarantee.

Volume ExhaustionCategory
Reversal · Volume SequenceStyle
XAUUSD, Forex, Crypto, IndicesMarkets
All timeframesTimeframes
Free · open-sourceAccess
What it does

An open-source volume-exhaustion engine: it builds directional candle sequences, requires real participation (relative volume and run volume mass against a rolling median baseline), arms the setup, then waits for an opposite-side shift candle that clears volume, body, range and optional break tests. Confirmed higher-timeframe structure gates the direction, a 0–100 Quality Score ranks the candidate, and accepted entries map Entry, a Run Extreme stop and TP1 / TP2 / TP3 with partial exits, breakeven after TP1 and R-based statistics — plus a Pulse pane that separates volume effort from price result.

Everyone has faded a move because it 'looked tired'. Four or five candles in the same direction, you step in front of it, and it keeps going. Candle count alone says nothing. A run of quiet same-coloured bars is not exhaustion, and a big-volume push can just as easily be the start of continuation. What matters is whether the sequence carried real participation, whether that effort stopped producing price, and whether the other side actually showed up.

Volume Exhaustion Entry checks each of those in order. Volume is normalised against a 50-bar rolling median, so one spike cannot distort the baseline. A directional sequence only counts when it reaches the required length and its average volume clears the run-mass floor, and only then is the setup ARMED. Armed is not an entry: the engine then waits for an opposite-side shift candle with enough volume against the run average, enough body, enough range against ATR and, optionally, a close beyond the previous bar. The sequence is labelled CLIMAX, EXHAUSTION, ABSORPTION or PASSIVE from its volume slope and effort/result efficiency, and a Pulse pane shows effort above zero and price result below it, so you can see effort stop turning into movement.

Confirmed higher-timeframe structure (HH/LH/HL/LL, BOS, CHoCH and sweeps, auto-mapped from your chart timeframe) gates the direction, and a 0–100 Quality Score weighs the shift (35%), exhaustion behaviour (25%), efficiency (20%) and structure context (20%). Hard gates stay separate, so a high score can never override structure, cooldown, an open trade or a stop that is too wide. A stop wider than the maximum risk rejects the setup instead of being quietly pulled in. Accepted entries get Entry, a Run Extreme stop and TP1 / TP2 / TP3 with 40 / 35 / 25% partial exits, breakeven after TP1 while the original 1R risk box stays on the chart, and cost-aware R statistics. Shadow calibration checks whether higher score buckets really produced better outcomes on your loaded history. Open-source and free, so you can read every rule.

What you get out of it
  • Stop fading moves just because they have run a few candles
  • Require real sequence participation, measured against a median volume baseline
  • Wait for an ARMED setup to be answered by a qualified opposite shift
  • See effort versus result in a dedicated Pulse pane
  • Filter direction with confirmed higher-timeframe structure and a 0–100 Quality Score
  • Get Entry, stop and three targets with partial exits, breakeven and R-based stats
  • Free & open-source: inspect and adapt every line of the logic
Best for

Reversal traders who want volume evidence, not candle count, before fading a move

Inside the engine

8 components, one output

Sequence + run volume mass

Directional bars build a sequence only above a relative-volume floor, and the run arms only when its average volume clears the run-mass threshold against a 50-bar rolling median, so quiet same-coloured candles never qualify.

ARMED → shift state machine

Arming is a waiting state, not an entry. The opposite shift candle must clear volume against the run average, body ratio, range against ATR and an optional previous-bar break. Setups expire, over-extend or cancel on a weak shift.

Four direction sources

Candle Direction, Close vs Previous Close, Price Path, or an Intrabar Delta Estimate built from lower-timeframe candles, which never silently falls back to another method when coverage is missing.

Pulse pane: effort vs result

Total effort, directional core and negative result columns, smoothed spines, normal and climax references, absorption markers, a Sequence Band with its n/required tag and a Shift Gate for the live setup state.

Sequence signatures

Each run is classified CLIMAX, EXHAUSTION, ABSORPTION or PASSIVE from its volume slope and price-per-participation efficiency, a description of the run rather than a probability.

HTF structure gate

Confirmed higher-timeframe HH / LH / HL / LL, BOS, CHoCH and sweeps with a bias and 0–100 conviction, auto-mapped from the chart timeframe, gating longs and shorts with Bias Only, Bias Or Ranging, Off or Counter-Bias Only.

Quality Score + shadow calibration

Shift 35% · exhaustion 25% · efficiency 20% · structure 20%, filtered by a mode-adjusted minimum. Otherwise-valid candidates are shadow-tracked by score bucket, with a BUILDING / MONOTONIC / MIXED verdict.

Risk-mapped trade model

Run Extreme, ATR, Shift Candle or Percent stops. Setups whose stop is too wide are rejected, not clamped. TP1 / TP2 / TP3 at 1R / 2R / 3R, 40 / 35 / 25% partials, breakeven after TP1, a time stop, SL-first same-bar handling and quantity-weighted costs.

How to use it

From a blank chart to a read

  1. Add Volume Exhaustion Entry to a standard candlestick chart and start with the default Aggressive mode and confirmed-bar signals.
  2. Check the structure timeframe on the panel. Auto maps it from your chart, for example 5m to 1h.
  3. Watch the Sequence Band in the Pulse pane charge. A LIGHT tag means the run is long enough but lacks volume mass.
  4. Treat ARMED (the purple candles and square marker) as a waiting state, not an entry.
  5. When the opposite shift confirms, read the LONG / SHORT SHIFT label, its Quality Score and signature, and the structure bias.
  6. Use Entry, the initial risk box, the active stop and TP1 / TP2 / TP3 as planning references, and size the risk yourself.
  7. Read Track Record and Score Audit only after meaningful samples, and compare direction sources separately.
  8. Try Balanced or Conservative for fewer signals, and validate on the exact symbols and timeframes you trade.
Written guide

10 pages, included

All 10 pages are open to every member.

Volume Exhaustion Entry — questions

It is free and open-source.
Read it, then run it.