ORDER-FLOW EDUCATION

Absorption in Order Flow

Understand absorption as an execution-and-response relationship rather than a standalone signal.

Updated: · KS8 Editorial

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Evidence to compare

  • High aggressive volume trades into a price area.
  • Price makes limited progress relative to that activity.
  • The opposite side continues to provide liquidity or the market rejects the area.
  • Subsequent structure either confirms the hold or invalidates it.

Context controls meaning

Absorption at a random location differs from absorption at prior value, a session extreme, or persistent displayed liquidity. Location and follow-through matter.

Review step

Save a before-and-after capture, then review the observations against the rules written in advance. Do not redefine success after seeing the outcome.