The Leledc Exhaustion Bar is an indicator for the MT4 platform. It is one of my personal favourites, for its strong ability to predict reversals.
How does it work?
Red means the trend is either reversing to the downside, or there is a pause in the uptrend
Green means the trend is either reversing to the upside or there is a pause in the downtrend
**Note the indicator is NOT repainting. All signals are printed at the close of the bar.
How do I use it?
I usually combine it with a moving average as a trend filter and only trade signals with the trend. In a trend, the indicator usually signals the end of the pull back and the continuation of the trend.
Here’s a screenshot of it in action:
Another way to use it is when there is confluence with support and resistance levels. See the two screenshots below with the orange arrows. I use it on the 5 min charts together with candlestick patterns and support/resistance lines.
Update: After much requests and deliberation, I have included the source code
Download it: Leledc Exhaustion Bar (source code included)
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- What is the difference between Leledc Exhaustion Bar 1 and 2?
- Ex bar 1 has much longer swings that Ex bar 2. In the screenshots below, you will notice that Ex bar 2 detects the smaller swing highs and lows while Ex bar 1 only detects the larger swings.