Emini: Exhaustion Patterns Explained

Got a couple of questions by email this week about Exhaustion patterns.

Exhaustion patterns show extreme volume being traded and that’s when you’ll get Professionals being active. They need the liquidity to move their large positions.

Where the Exhaustion pattern happens determines what is going on:

1. Exhaustion selling at new Lows shows the end of a downtrend move might be approaching
2. Exhaustion buying immediately after this Low shows Short covering and profit taking
3. Exhaustion buying after a period of consolidating at the Lows shows the beginning of an uptrend move
4. And then you’ll see Exhaustion buying and the reverse of these signals at new Highs

Good luck with your Emini trading.