Trade_Rocket_Investments

what is a weak or a strong exhaustion?

FX:CADJPY   Canadian Dollar / Japanese Yen
after buyers and sellers have had battle at a significant zone and there is a clear winner with a move to the upside or to the downside we will then wait for exhaustion back to that zone, but how do we know if exhaustion is strong or weak? we have rules that if exhaustion is strong then we wait for double confirmation and if exhaustion is weak we just wait for price action with a bullish engulfing or significant pin par on the 4h timeframe. so a strong exhaustion will be just 1,2 or 3 candles back to area of sensitivity, no flow, just a straight shot to our zone. a weak exhaustion will have minor push and exhaustion cycles within the exhaustion, this is where entry confirmation will just require a bullish candle or a pin bar on the 4h timeframe
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