Setup 5 · Exhaustion fade, the CVD divergence

Premium, and demanding. Price makes new highs (or lows), but the bubbles in the direction of the move shrink and the CVD diverges. A persistent opposing wall is waiting. You "fade" the loss of momentum, that is, you take the other side of a move that has run out of fuel.

What you need to see

• New extremes in price, on smaller and smaller bubbles in the direction of the move.
• A clear CVD divergence, over two or three successive extremes.
• A persistent opposing wall waiting just above (or below).
• The first sign of reversal on contact with that wall: rejection candle, bubbles flipping.