A 0 to 100 read on how stretched a price move already is. Strength is not the same as freshness. A move can lead the market and still be running out of room.
Every charting platform ships a version of the overbought question. RSI, Stochastics, and Williams %R read a single oscillator against fixed thresholds. They are universally known, universally free, and universally documented to produce false signals in trending markets. A stock can register overbought for weeks without reversing. Wilder himself wrote that overbought does not mean sell.
At the other end of the spectrum, DeMark's TD Sequential counts 9-bar setups and 13-bar countdowns to identify pattern-level trend exhaustion. It is sophisticated and institutionally priced. It produces discrete event flags rather than a continuous read.
Exhaustion Score is used each day to modify how Phospho reads the other pillars behind every Morning Luminary trade idea. It is not an indicator you operate. It is context for a recommendation Phospho has already made.
When Exhaustion Score is shown in our intelligence, here is how to read it:
A 78 places this stock in the Exhausted zone. The move has been strong, fast, or persistent enough that reversal risk is now elevated and continuation is less likely to be clean.
Direction matters. On this score, higher is worse. The Fresh zone is on the left, not the right. Read the color, not just the number.
Five bands align to the three zones shown on the tile above. Only Band 5 sits in the Exhausted zone.
Exhaustion is a context score. Its commercial purpose is to modify how a Leadership reading is interpreted. Four patterns illustrate the combinations.
These are illustrative patterns. Every Deep Dive report spells out the specific signal combination that mattered for its trade idea.
Exhaustion runs through every analytical layer of the platform. In two surfaces you see it directly. In the third, it shapes which trades reach you.
Exhaustion measures how stretched a move already is. The score composites multiple signals that each speak to a different dimension of stretch, then normalizes the result to a 0 to 100 scale with three zones. It is not a single oscillator and it does not rely on fixed thresholds from any one input.
Component-level detail is under review. The glossary will be published once the input set is confirmed.
The composite output lands on the 0 to 100 scale and maps to one of three zones. The zone is what drives interpretation.
A score of any kind carries uncertainty about the future. Exhaustion is a backward-looking read on stretch. It is most credible when its limits are understood upfront.
Exhaustion is a composite, not a single oscillator. And it is not sold as a tool.
RSI reads one input against a fixed threshold. Exhaustion combines multiple stretch signals into a single composite, then reports three zones instead of two thresholds. More fundamentally, RSI is something you operate on a chart. Phospho's Exhaustion is a component of the analytical thesis behind every Morning Luminary trade idea. The score is not a tool we hand you. It is context for a recommendation we have already made.
Daily, at the time of Deep Dive generation.
No. A high reading flags risk, not timing.
Exhaustion says the move is stretched. It does not say when the reversal begins. A stretched stock can stay stretched. Read it alongside Leadership and Continuation before drawing any conclusion about the next move.
No. Fresh plus Laggard is not the same as Fresh plus Leader.
Low Exhaustion means the move has room. Whether that room is worth trading depends on direction. A Fresh reading on a Leader is the cleanest continuation profile. A Fresh reading on a Laggard is usually a wait, not a buy.
Exhaustion is a composite, not a single oscillator. And it is not sold as a tool.
RSI reads one input against a fixed threshold. Exhaustion combines multiple stretch signals and is part of the analytical thesis behind every Morning Luminary trade idea.
Daily, at the time of Deep Dive generation.
No. A high reading flags risk, not timing.
A stretched stock can stay stretched. Read it alongside Leadership and Continuation.
No. Fresh on a Laggard is not the same as Fresh on a Leader.
Low Exhaustion means the move has room. Whether that room is worth trading depends on direction.