Ok so now we want to see on our chart a fourth component that could amplify the perception of Exhaustion... "Exhaustion Hints"
One way is thru divergence... it may be tricky, but diverging rave tops are nice to call for centripetal refreshing setups of M`s types... this is counter trend, you must understand that on great momentum conditions they are agresive... still is one of my favourites setups once you get used to it... not suited for newbies... so this must be practiced a lot before any live tading..
The market is somehow far from the axis and its making an M type pattern where it can be ( lazy, equall or false break ) :
and on that extremes a divergence from an oscillator may come handy to confirm the "potential" exhaustion...
One nice classic oscillator for this can be the Chaikin Oscillator as it is a Macd of the Accumulation/Distribution line... so its not a macd of price itself but of price and volume making it more robust... there are many other oscillator for this as well...
so here some charts of this type of situations :
it is an agresive type of setup... you look for m`s and get more confident with the divergence... cheers Walter.