The board that means two things
04.02.01 named this exact board: a range of ₹6.80 with the last bid ₹6 above the first, body 88% of the day. A momentum candle — a day that went one way and stayed there.
Exhaustion — also called a climax, or a blow-off — is the same drawing, with one difference that is nowhere on it: it happens at the end of a long move rather than near the start of one.
So there is no geometry to learn here. No threshold, no ratio, no new measurement. That absence is the lesson, and it is the most important thing this chapter has to say.
One board, two months
The last candle is the same four numbers in both, drawn on the same scale. Switch between them and watch nothing about it change.
Both drawings are on one fixed scale from ₹20 to ₹35, so the final candle is the same size in each. That is not a trick of the drawing.
Why the name is only available afterwards
Look carefully at what the second panel claims. It does not say this candle is exhaustion. It says it is exhaustion if the rise stops here — and on the day itself, nobody knows whether it does.
That makes exhaustion different from every other name in this chapter. Momentum, rejection and indecision can all be measured off the board the evening it is written. Exhaustion needs the days that come after it, which is to say it is a name given in hindsight.
This is worth being blunt about, because a great deal of writing about candlesticks is not. A shape that can only be identified once you know the outcome cannot have helped you predict the outcome.
Momentum and exhaustion are the same picture. Only where it stands in the move tells them apart — and on the day itself, the move is not finished.
- First bid, highest, lowest, last bid
- identical in both
- Body as a share of range
- 88.2% in both
- Where the last bid finished
- 94.1% of the way up, in both
- What came before
- a flat fortnight · a five-week rise
- Difference visible in the four numbers
- none
Lakshmi shows Rahul the second board on the evening it was written, with the five rising weeks behind it. What can honestly be said?
What this opens
Everything in chapter 04.02 has been a name for a measurement you could take off a single board. This last one cannot be, and that is the crack through which the rest of Part 04 arrives.
The shapes in 04.03 have the same property in a milder form: 04.02.02 already showed that a hammer and a hanging man are one drawing separated by what precedes them. Here the separation is not even a past trend but a future one.
Chapter 04.05 states the principle properly and gives it a rule. For now the useful habit is smaller: when a name requires something that is not on the board, say so out loud — and notice how many names do.
Which of these can be decided on the evening the board is written?
Five names, and every one of them a region of the single measurement 04.01.01 ended on. The next chapter starts naming shapes that take more than one day to write.