A reversal pattern where a sustained trend ends as volume gradually dries up, indicating that the driving force behind the move has been depleted. Unlike a volume climax which features a spike, volume exhaustion is characterised by a steady decline in trading activity as the trend loses steam. The actual reversal typically begins when volume picks up again in the opposite direction, confirming that new participants are entering to drive price the other way.
Example
“Volume steadily declined over eight sessions as the stock drifted to new highs on ever-weaker participation, and the volume exhaustion reversal was confirmed when a down day printed twice the average volume.”