Momentum Exhaustion Exit

Entry Logic

• This is an exit strategy, not an entry strategy.

Exit Logic

• Exit trigger: A stock makes a large, parabolic move and then forms a reversal candle (e.g., a doji or a shooting star).
• Confirmation: Volume is very high on the reversal candle.
• Timeframe: 5-minute chart.
• Location context: The exit occurs at a new high or low of the day.
• Market condition: The market is extremely volatile.

Stop Loss Structure

• Not applicable.

Risk Management Framework

• Not applicable.

Position Sizing Model

• Not applicable.

Trade Filtering

• Not applicable.

Context Framework

• Not applicable.

Trade Management Rules

• Not applicable.

Time Rules

• Not applicable.

Setup Classification

• Not applicable.

Market Selection Criteria

• Not applicable.

Statistical Edge Metrics

• Not applicable.

Failure Conditions

• Not applicable.

Psychological Rules

• Mental discipline: Have the discipline to take profits when the market gives you a clear exit signal.

Advanced Components

• Not applicable.

Location

• Where strongest: At the end of a strong trend.
• Where weakest: In a consolidating market.