FMG Technical Analysis, page-8301

You can see on the chart that I plot what I call a "Frothy" line in green. This is 3.7 ATR's above the current close and on this chart is at $26.07 or 20.19% up from current levels. By happenchance, it is at the same level as the previous highs of Jan & July 2021 which in traditional charting could be read as a resistance level. In my view, a close above the frothy level is a warning sign of over exuberance, and I would take an exit if the close goes above frothy level & then falls back. As such it can be considered a "profit take target" but does not not occur too often. Note however that the frothy level will rise & fall in response to price action.