Engineering Alpha

Engineering Alpha

Testing a New Market Pattern - The Verdict

Can Time Above Equilibrium Beat TD9?

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Jul 17, 2026
∙ Paid

Traders love exhaustion patterns.

The idea is simple: a market moves too far, stays stretched for too long, and eventually starts losing momentum. At that point, the probability of a reversal may increase.

That is the theory, at least.

In practice, most exhaustion patterns are either too subjective, too visually convenient after the fact, or too dependent …

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