 Why do markets reverse? One of the most common reasons is exhaustion. Look at the amount of aggressive buying volume on this first leg up. Compare it to the buying volume on the second leg. What's going on here? What's behind this volume? Well, the first move into a new area usually stops out short positions. This is clearly shown with bookmap stops indicator. On the second move, there are no more shorts to be stopped out. So to continue higher, there needs to be new buyers entering this market. But with no more stops and no new buyers, we have buying exhaustion and price reverses. Here's another look at exhaustion. You can see it much more clearly using bookmaps volume dots on the best bid and offer.