Smart Impulse Exhaustion Finder (ATR + ADX Filter)

Smart Impulse Exhaustion Finder (ATR + ADX Filter)

This advanced script helps you spot potential trend exhaustion points exactly where impulsive moves may lose strength.

It automatically combines multiple conditions:

✅ Identifies fresh swing highs and lows using a smart lookback range.

✅ Confirms strong price extension with a minimum ATR distance from the previous swing.

✅ Uses RSI extremes, volume spikes, and candle wick rejection to detect signals only when at least two out of three exhaustion factors align.

✅ Filters out false signals during sideways chop using an ADX trend strength filter.

✅ Ignores noise candles like dojis by requiring a clear minimum body size.

This makes the tool flexible for catching late-stage trend impulses that might be due for a pullback or reversal — ideal for trailing stop strategies, partial profit taking, or hunting reversal setups on crypto, forex or stocks.

How to use

📌 Tip: This is a sniper-type tool that can catch the very start of a reversal.
Therefore, when trading its signals, it’s strongly recommended to use a Risk:Reward ratio of at least 1:3 — especially for crypto markets.

The idea is simple:

Look for exhaustion signals at fresh swing highs for potential short pullbacks.

Or at fresh swing lows for potential long reversals.

Combine with your own trend and context tools.

Always test thoroughly before live trading.

Inputs

🔹 Extremum Lookback: Defines how far back to check for fresh highs/lows.

🔹 ATR Threshold: Controls the minimum impulse distance.

🔹 ADX Filter: Ensures signals only appear in meaningful trending conditions.

🔹 Body and Wick Filters: Reduce noise by rejecting tiny candles and highlighting clear rejection tails.

Disclaimer

⚠️ This script is for educational purposes only and does not constitute financial advice.
Trade responsibly — always use proper risk management and test before deploying in live conditions.