Range Exhaustion
Range Exhaustion occurs when price meets or exceeds the expected range for the current period. At these levels, price starts to lose its momentum relative to earlier in the period, so its a good point to make sure you are not taking new positions.
This indicator will show you where this is likely to happen on your chart, showing levels for Daily, Weekly and Monthly periods.
When you see price exceeding these exhaustion levels, it's telling you that the momentum behind the move is very strong and likely heading for the higher timeframe level.
The indicator can use the Average True Range (ATR) or the Average Range (ADR) calculation, depending on your preferences. By default we use ATR as we find it works better on Forex charts, but ADR does have the edge on Stock based indices and symbols.
