It is crucial that you understand when “Trend Exhaustion Signals” are more
likely to be accurate and lead to a large-scale price reversal. Keep the following
tips in mind when you are scanning for ideal Trend Exhaustion trade candidates:
The ADX value is at an extreme reading (50 - 60+)
Price is in a consolidation phase or moving sideways
Price has reached an area of prior support (bullish positions)
Price has reached an area of prior resistance (bearish positions)