Definition. A situation in which a price move ends because there's no one left willing to continue it, and the aggression gradually fades.
How it works
In the direction of the move, volume at successive levels declines, delta weakens and price reaches a new extreme without a new wave of aggressive orders.
Example
Price makes a new low of the day, but aggressive selling volume at the new levels is clearly smaller than before.
What to watch out for
A new wave of aggression can follow exhaustion. Its significance depends on the context of the level and the day.
This is the footprint in the Hetman Terminal (Hetman X-Ray). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data. See all the Hetman Terminal tools →
♛ The Hetman Terminal is part of Club: live for Dow Jones from the Bishop plan, 6 markets (Dow Jones, S&P 500, Nasdaq, gold, crude oil, Bitcoin) and automatic detection of order flow events from the Rook plan. A session on the ♛ Hetman Index (training, simulated data) in the full panel comes with the Knight plan and above. Compare the plans →
You'll find the full explanation with graphics, examples and exercises in the 📖 Order flow encyclopedia space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).
