Not being a technical analyst I do not know what the correct term for exhaustion is, or whether it can be tested, or even how to generalize it or if it is bullish or bearish, but it looks worth considering in both the long and short run.

Dr. Janice Dorn adds:

Pring described a number of technical bars, all of which I cannot recall, but included exhaustion bars. There is also the phenomenon of exhaustion gaps described by Farley. Certainly there are others too.

GM Nigel Davies adds:

The phenomena of exhaustion for a chess player is usually seen as moments of mustered strength (usually pride) amidst a gradually deteriorating performance. Yet how does one measure it?

One thought might be to consider again the Ryder Cup teams. What happens if we have a 'weaker' (various ways to measure this) team but with a couple of stars (e.g. Woods and Mickelson)? I figure we should bet against the weaker team just after the stars have played their matches.

Jay Pasch offers:

One might also test for predictive measures for exhaustion using a 3rd clearly articulated gap, especially on individual equities, as demonstrated by opwv:


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