Price Action Forex Trading - Climax & Exhaustion Reversal Bars

price action forex trading climax and exhaustion bars Dow chart 1

In one of my most recent webinars on price action forex trading, I talked about a key method for detecting when a trend is over-extended, which is to look for a climax or exhaustion reversal bar.  I had mentioned how from an order flow perspective why these exhaustion and climax bars tend to represent a high probability reversal coming based on the various participants and how they tend to trade trends.

Before I get into today’s article which will be an expansion and amplification of this, to recap – the key things you want to be looking for in spotting these exhaustion and climax reversal bars are;

1) a bar that is much larger than the previous price action

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