Trend Exhaustion Counter

🔢 How It Works
The Trend Exhaustion Counter consists of two main phases:

1️⃣ Setup
Begins when the close price is greater (or less) than the close 4 bars earlier.

Each bar that meets the condition increments the count.

A complete Setup = 9 consecutive bars that meet the rule:

In an uptrend: close > close[4]

In a downtrend: close < close[4]

Once the 9-count is complete, the market is considered to be in a short-term exhaustion phase.

2️⃣ Trend Exhaustion Counter (Optional Phase)
A secondary phase that counts to 13 (less common in simplified versions).

Confirms potential exhaustion after Setup.

More conservative, but signals stronger reversals.

🟢 Bullish Signal
A 9-count to the downside suggests selling may be exhausted, indicating a potential bottom and reversal upward.

🔴 Bearish Signal
A 9-count to the upside suggests buying may be exhausted, signaling a potential top and reversal downward.

🎯 Usage Tips
Best used in trending markets to identify trend exhaustion.

Works well with support/resistance levels, volume, and candlestick patterns.

Can be combined with other indicators (like RSI or MACD) for confirmation.

📉 Limitations
False signals can occur in choppy, sideways markets.

It doesn’t predict trend direction—only possible exhaustion.