Parabolic Exhaustion
Multi-gate exhaustion signal detection with confidence tiers
Version 4.0 — Parabolic Exhaustion detects when price moves are running out of momentum by running signals through a 5-gate confirmation system. Each signal receives a confidence tier based on how many gates it passes.
Confidence Tiers
Long Signals (Bullish Exhaustion — expecting a move down)
| Tier | Gates Passed | Description |
|---|---|---|
| L1 | 3/5 | Basic exhaustion signal — use with additional confirmation |
| L2 | 4/5 | Strong exhaustion signal — higher confidence |
| L3 | 5/5 | Maximum confidence — all gates confirmed |
Short Signals (Bearish Exhaustion — expecting a move up)
| Tier | Gates Passed | Description |
|---|---|---|
| S1 | 3/5 | Basic exhaustion signal — use with additional confirmation |
| S2 | 4/5 | Strong exhaustion signal — higher confidence |
| S3 | 5/5 | Maximum confidence — all gates confirmed |
The 5-Gate Confirmation System
Every potential exhaustion signal is evaluated through 5 independent gates:
| Gate | What It Checks |
|---|---|
| Velocity | Is price moving at an unsustainable rate? |
| Volume | Is volume confirming or diverging from the move? |
| Candle Structure | Are candle patterns showing rejection or indecision? |
| RSI | Is RSI in extreme territory? |
| Divergence | Is there a divergence between price and momentum? |
A signal must pass at least 3 gates to generate even an L1/S1 signal. Higher-tier signals require more gates to confirm.
Sensitivity Modes
| Mode | Description |
|---|---|
| Conservative | Fewer signals, higher quality — best for swing trading |
| Normal | Balanced signal frequency — suitable for most styles |
| Aggressive | More signals, lower threshold — best for scalping |
Entry Modes
Enter as soon as the exhaustion signal fires. Fastest entry but highest risk of premature signals.
Wait for price to break through the signal candle's high/low. Adds confirmation but may miss some moves.
Wait for a break followed by a retest of the signal level. Most conservative entry with highest win rate.
Filters
| Filter | Description |
|---|---|
| ADX Trend Penalty | Reduces signal confidence during strong trends (high ADX) to avoid counter-trend entries |
| Chop Filter | Suppresses signals during choppy, ranging markets |
| Volatility Filter | Adjusts sensitivity based on current volatility conditions |
| HTF Filter | Requires higher-timeframe alignment before generating signals |
Auto-Adaptive Timeframes
The indicator automatically adjusts its internal parameters based on your chart timeframe. What works on a 1m chart requires different calibration than a 4h chart — this happens automatically.
Cooldown
After a signal fires, a configurable cooldown period prevents duplicate signals in the same area. This reduces noise and prevents over-trading on the same setup.
Settings Reference
| Setting | Default | Description |
|---|---|---|
| Sensitivity | Normal | Conservative, Normal, or Aggressive |
| Entry Mode | Immediate | Immediate, Break, or Break + Retest |
| Signal Timing | Confirmed | Confirmed or Realtime |
| ADX Filter | On | Trend strength penalty |
| Chop Filter | Off | Suppress choppy market signals |
| Volatility Filter | On | Volatility-based adjustment |
| HTF Filter | Off | Higher timeframe alignment |
| Cooldown | 5 candles | Minimum candles between signals |
| Show Dashboard | On | Display signal statistics |