A late, often outsized move at the end of a trend that fails to follow through, as the last buyers (or sellers) are used up.
How traders use it: Traders look for exhaustion into a higher-timeframe level, followed by a structure change, before considering a reversal.
Common mistake: Calling exhaustion just because a move "feels" extended.
Related: Selling climax (SC), buying climax (BC), automatic rally/reaction (AR), secondary test (ST) · Momentum · Change of character (CHoCH) / market structure shift (MSS)
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.