What Is the Difference Between Absorption and Exhaustion?

Absorption and exhaustion can look similar, but they describe different ideas.

Absorption occurs when aggressive orders meet opposing liquidity and price makes relatively little progress.

Exhaustion generally refers to a directional move losing participation or momentum as it approaches a possible turning area.

Neither one guarantees a reversal.

I observe what happens next: does price continue, consolidate, or begin moving in the opposite direction?

Understanding the distinction helps me avoid labeling every stalled move as the same pattern.