The ema exhaustion is an oscillator that combines the fisher transform formula with distance from moving average. The default settings are 9 for the fisher transform length and 50 for the ema duration. These are the preferred settings for swing trading but both can be adjusted in the settings. The timeframe can also be modified.
Crosses above 2 signal profit taking opportunities on longs and / or confirm short entries. Crosses below -2 signal profit taking opportunities on shorts and / or confirm long entries. A perfected long entry occurs when emasar is in a bull trend and the exa is below -2 while price tests the beach.
A perfected sell signal occurs when the exa is above 2 and price tests the beach (during an emasar bear trend).