Chart Fanatics
August 1, 2026
Distinguishing Stop Runs, Absorptions, and Exhaustions in Trading
TL;DR
Professional traders differentiate between stop runs, absorptions, and exhaustions—three patterns that look identical but have completely different directional potential and require distinct trading approaches.
Key Takeaways
- 1Stop runs, absorptions, and exhaustions produce identical chart patterns but occur for fundamentally different reasons with vastly different directional potential.
- 2A real stop run lacks significant directional potential, while absorptions and exhaustions offer moderate to higher potential for price movement.
- 3Identifying absorption patterns instead of misclassifying them as stop runs can provide a game-changing improvement to win rate and edge.
- 4Adding this precision layer to ICT trading structure improves win rate, risk-to-reward ratio, and overall trading edge.
- 5A 5% improvement in win rate from correctly identifying these nuances can transform trading profitability despite using the same underlying structure.
Notable Quotes
“The pattern can be exactly the same one, but the reason why it happens is completely different, and the directional potential is completely different.”
— Speaker
“Just having a 5% win rate more, just being able to see that you can not evaluate that setup because you don't see the absorption, it's going to be a game changer for you, I promise.”
— Speaker
Chapters
1. The Problem: Identical Patterns, Different Meanings
Retail traders fail to distinguish between stop runs, absorptions, and exhaustions—three patterns that look the same on charts but have completely different reasons for occurring and different directional potential.
2. Directional Potential Comparison
Stop runs have minimal directional potential, absorptions have probable directional potential, and exhaustions fall somewhere in the middle—a critical distinction for trade selection.
3. Precision Through Pattern Recognition
Adding the ability to identify absorption patterns to existing ICT trading structure provides an extra layer of precision that improves win rate and risk-to-reward without changing the core methodology.
4. Impact on Trading Edge
Just a 5% improvement in win rate from correctly evaluating these three distinct patterns can be a game-changer for overall profitability and trading edge.
Glossary
- Stop Run
- A price movement that triggers stop-loss orders before reversing; lacks significant directional potential when it is a real stop run.
- Absorption
- A pattern where large orders are absorbed into the market, indicating strong directional potential and a buying/selling opportunity.
- Exhaustion
- A pattern indicating that a price move is running out of momentum, with moderate directional potential for reversal or continuation.
- ICT Trading
- A trading methodology based on understanding institutional order flow and market structure rather than traditional technical indicators.
- Edge
- A trader's statistical advantage or probability-based approach that generates consistent profits over a series of trades.