Momentum and Exhaustion
By the end, you can describe momentum as urgency and exhaustion as its loss.
A sprinter. Momentum is the burst of speed; exhaustion is the moment the legs give out and the pace collapses — even though they're still moving forward briefly.
Momentum is urgency — big bodies, little overlap, price travelling fast. It shows the controlling side is eager. Exhaustion is when that urgency fades: candles shrink, wicks grow, progress slows even if price still drifts the same way.
Exhaustion is not a reversal signal by itself — it's a *loss of urgency*. It says 'the fuel is running low here', which is a cue to pay attention, not to predict a top or bottom.
“Momentum is huge — it'll keep going forever, I'll chase.”
“Momentum was strong, but candles are shrinking and wicks growing into a level — urgency is fading. I stop chasing and watch for structure to change.”
Exhaustion is best described as…
- Momentum = urgency; exhaustion = its loss.
- Exhaustion is a heads-up, not a reversal signal.
- Stop chasing when urgency fades into a level.
Up next — One of the most telling events is a move that fails. Next: failed breakouts and breakdowns.