Exhaustion Reversal

# 📘 Exhaustion Reversal – Quick Start Guide

This tool highlights **reversal zones** where price is stretched too far and likely to snap back.

---

## 1. What to Look For

* **Green Box + Neon BUY Arrow** → Possible Buy Setup
* **Red Box + Neon SELL Arrow** → Possible Sell Setup
* Background color:

* Light **green tint** = Bias is LONG (favor buy setups)
* Light **red tint** = Bias is SHORT (favor sell setups)

---

## 2. How to Take a Trade

**BUY Setup**

1. Wait until you see a **green shaded box** and a **neon BUY arrow**.
2. Confirm the candle closed **green** (bullish).
3. **Entry (EP):** Enter at the closing price of the signal candle (labeled “BUY ENTRY”).
4. **Stop Loss (SL):** Set just under the low of the signal candle (labeled “SL”).
5. **Take Profit (TP):**

* Safer target → the blue **Center Line**.
* Aggressive target → **Band 1**.

**SELL Setup**

1. Wait until you see a **red shaded box** and a **neon SELL arrow**.
2. Confirm the candle closed **red** (bearish).
3. **Entry (EP):** Enter at the closing price of the signal candle (labeled “SELL ENTRY”).
4. **Stop Loss (SL):** Set just above the high of the signal candle (labeled “SL”).
5. **Take Profit (TP):**

* Safer target → the blue **Center Line**.
* Aggressive target → **Band 1**.

---

## 3. Quick Rules to Remember

* ✅ Trade WITH the background bias.

* Green background → focus on BUY setups.
* Red background → focus on SELL setups.
* ❌ Skip weak candles. Look for **strong bodies** (bigger candles).
* ❌ Don’t take every arrow. Wait until price stretched to the **outer Band 2**.
* ✅ Manage risk. Never risk more than **1–2% of your account** on a single trade.

---

## 4. Beginner Flow (step-by-step)

1. Watch for **background tint** (green = buy, red = sell).
2. Wait for price to **touch/pierce Band 2**.
3. Watch for a **reversal candle** (green after red, or red after green).
4. Enter at the “ENTRY” label, place SL and TP at the lines.
5. Let the trade play out – don’t move stops unless you scale out.

---

## 5. Example Trade

* NAS100 on 5m chart:

* Background turns red → bias is SHORT.
* Price spikes above **Upper Band 2**.
* Red reversal candle closes.
* Arrow + label appear → Enter SELL.
* SL at candle high, TP at Center Line.

---

💡 **Pro Tip for New Traders:**
Start by practicing this system in a demo account. Focus on spotting the *cleanest* setups where price clearly stretches to Band 2 and gives a strong reversal candle.