Smart Impulse Exhaustion Finder (ATR + ADX Filter)

📌 Purpose
This indicator detects potential exhaustion of strong bullish or bearish impulses at fresh swing highs/lows by combining multiple price action and volatility-based filters.

🧠 How It Works
A signal is triggered only when all core conditions are satisfied:

1. Swing High/Low Detection
Current high (or low) must be the highest (or lowest) over the last Extremum Lookback bars (default: 50).

This ensures the move is significant relative to recent price action.

2. Impulse Confirmation
Price must extend by at least 1 × ATR from the previous swing point.

This filters out minor fluctuations.

3. Exhaustion Conditions (at least 2 out of 3 must be met)
RSI Extreme: RSI > Overbought Level (default: 80) for bearish signals, RSI < Oversold Level (default: 20) for bullish signals.

Volume Spike: Volume > SMA(Volume, Volume SMA Length) × Volume Spike Multiplier.

Candle Wick Rejection: Upper wick ≥ Wick Threshold % for bearish setups, Lower wick ≥ Wick Threshold % for bullish setups.

4. Trend Filter
ADX > ADX Threshold ensures the market is trending and filters out sideways conditions.

5. Candle Body Filter
Candle body must be ≥ Body Size ATR Factor × ATR.

This avoids weak signals from small candles or doji formations.

📈 How to Use
Bearish Signal:
Appears at fresh swing highs with exhaustion conditions met. Useful for tightening stops, taking partial profits, or counter-trend shorts.

Bullish Signal:
Appears at fresh swing lows with exhaustion conditions met. Useful for trailing stops, profit-taking, or counter-trend longs.

Recommended Timeframes: Works best on 1h, 4h, and Daily charts.
Markets: Crypto, Forex, Stocks — wherever volatility and trends are present.

⚙️ Inputs
RSI Length / Overbought / Oversold

Volume SMA Length & Volume Spike Multiplier

Wick Threshold %

Extremum Lookback (bars for highs/lows)

ADX Length & Threshold

Body Size ATR Factor

⚠️ Disclaimer
This script is for educational purposes only and does not constitute financial advice.
Always test thoroughly and apply proper risk management before live trading.

💡 Tip: Combine this tool with your own market context and confluence factors for higher probability setups.