Trend Exhaustion is an existing Spectro tool that has been enhanced; it now gives you colored price exhaustion. Spectro M3 detects when trends are weakening and ultimately coming to an end. When this occurs, Spectro will print an exhaustion line from where the price/trend starts to decline.
When Spectro prints a green exhaustion line, the downtrend is weakening and could turn bullish at any point. The same goes for if Spectro prints a red exhaustion line, the uptrend is weakening and could turn at any point. There are two options within Trend Exhaustion types, which are; Pure and Filtered. Pure, prints the exhaustion line to the pure price action whereas Filtered tries to remove noise and will produce slower but more conservative signals. Very similar to other of our indicators, the darker the color, stronger the exhaustion.
Trend Exhaustion Levels, we now offer four different types of algorithms to spot trend exhaustions: Murrey’s, BB Fibonacci, Classic, Fibonacci. They’re all formulas that provide horizontal levels. We use them to qualify our signals – by altering that you will change when indicator thinks it’s exhausting or not. Always remember to adjust it to whatever asset or timeframe you’re using to see what’s yield the best quality signals for the latest market conditions. Visual backtesting is the secret.