HORC: Internal and External Divergence (Absorption Part 2)

All right guys, welcome back to class.

Um, in the last class I introduced us to

divergence. Now divergence is simply a

situation whereby um, we have

opposite signs from the aggressors.

signs of coordinates from the aggressors

and uh and the passive. Okay. So which

means the present move the present

momentum in the market either price is

selling presently or price is buying

presently is the aggressor and that is

the present trend of the market. So and

the passive is that high that has been

formed or that low that has been formed.

And I said it can even be a certain low

that was formed already in London and

now you are in New York or the same day

that low is already passive. It is

already visible. We can already see it.

All right. So that is passive. That is

passive means not active. All right. So

there there are a lot of things they are

pending order resting in London that

people have actually placed that okay

below this low they want to do a sell

stop they want to do a buy stop and what

not okay so that's already passive while

the present trend is the aggressor okay

so we say that the coordinate of the

passive

okay

so the coordinates

Uh why is this not

okay?

I don't know why it is not oh white.

Okay. So the coordinate

let's go to this.

So the coordinate of the passive so that

is that high

this particular high. this particular

high that is already formed they are the

passive. So the coordinates of such

passive

and then the coordinate of what comes to

read is you see that this is a present

move. All right even as it is reading it

without forming swing guy first you can

already know it coordinates. So the

present one and the what and the other

one that is already there. So the

coordinate of the passive and the

coordinate of the present trend which is

the aggressor. So if they what if they

start diverging against each other that

is let's say the coordinate of the

passive is w - d minus s+ and then the

aggressor show us w plus from the moment

even the highest volume

from the moment the highest volume show

us that they have opposite sign we

already know that divergence has started

that is price might reverse anytime time

soon and what we are interested in is

always the this eye the low that is

created which is external and we will

talk about that in a minute. All right.

So and then we have this. So if we now

have full divergence here that is we

have w + d plus and did I write s+ if I

wrote s+ then this will be s minus

whereby all the aggressor and the

passive the signs each of them

is is opposite to each other then we say

that that is a full absorption and we

can anticipate a reversal. Okay, we

anticipate a reversal. So that is that.

So now let's let's let's move to uh

today's order of thing. Today we are

interested we are more interested in the

external and internal side of divergence

because that is the first way to group

it before we go to we we tend to look at

exhaustion. So exhaustion is what we

will be talking about first. Exhaustion

absorption.

Exhaustion absorption.

So what is exhaustion

absorption

absorption?

All right. So what basically is

exhaustion absorption? Exhaustion

absorption is simply a situation. All

right. whereby we have full absorption

that causes a reversal. That is the

passive limit orders are able to what

they are able to limit the effect of the

aggressors. Remember the aggressors are

what are the present trend which mean

presently let's say aggressors are

buying

the ability of the what the passive or

others to absorb all of the momentum of

what of the passive of the aggressors

that is it is a case whereby passive

absorb

passive absorb

So whereby passive absorb

aggressors.

Okay. So the present trend let's say for

example we have an uh let's say uh we

have an AOI here

then the liquidity engineered. Now this

present buy that is happening these are

the what? These are the aggressors the

passive this is the liquidity

engineered.

All right and this is our AOI here. So

the moment price now reach this high.

If this passive orders and the area

where we can sell from are able to cause

a reversal of the present trend. The

present trend is a buy. The old trend is

a sell. So if they are able to cause the

what the this reversal they are able to

cause it to happen which means in the

case of exhaustion absorption passive

liquidity is greater than aggressors

liquidity that's the implication that is

it we have explained it what are who are

the aggressors the aggressors are you

and I are the present participant in the

market the present buyers and the

present sellers

in the markets. Those are the what?

Those are the those are the passive.

Those are the sorry those are the

aggressors. The present participants.

They are the aggressors. And who are the

passive? The passive is your liquidity

provider side of liquidity

which we have spoken about. So if

excessively

if passive orders that is if absorption

as it is taking place is able to cause a

reversal of the present trend. If the

present trend is a pullback if it is a

major this thing or whatever

they even as much they are able to cause

a reversal of the present trend that is

exhaustion.

absorption. That right there is

exorption absorption. So what is now

how does exhaustion absorption how does

it work? All right. The way exion

absorption works is that we I've already

established for you guys that a certain

AOI or block that price will use will

always have a liquidity before it. So

the question is now that that liquidity

just before your valid AOI is it being

absorbed

that is how you will know if this AOI

will be valid or not is it being

absorbed all right is divergence

happening between that passive I and the

present trend the aggressors so how do

we know if it is being absorbed by

virtue of let's say that the that the

coordinates there is D minus S minus and

the aggressor is D + S+ that is we have

total divergence D minus and D plus

absorbing each other S minus and S plus

absorbing each other. Therefore we can

anticipate at that particular AOI we can

anticipate a reversal.

We can anticipate a reversal. So that is

what that is

exhaustion absorption.

That right there is exhaustion

absorption which is the one that causes

what? That causes a full reversal of a

present trend of the present trend. That

is it limits the effect of what? Of the

aggressors. That is it is a case whereby

passive orders are able to absorb the

aggre what the aggressors

the present trend. It is that simple. So

the moment I now said the indication of

it is usually through the biggest volume

opener range here the biggest one is

daily. So if daily and daily already

start absorbing and maybe price has not

given session that is uh price has not

given session then you can now wait for

sessional to complete the absorption and

for price to sell. But the major thing

we know is that what is the highest

volume over is he already diverging?

Then when it is complete, we know that

that is a complete auction and then we

can look forward to what a valid AOI

above the high that is being absorbed

above the eye that is being absorbed

because that eye that is being absorbed

is the one that particular market maker

that is staying at this AOI or at this

other block. it is that particular

uh liquidity. It means that that is the

liquidity it wants to use to activate or

to mitigate its loss before price

continue its initial trend or before

price reverses.

All right. So that is what that is

absorption.

That right there is absorption.

All right. So that is exhaustion.

Absorption. So now we'll now take a step

further. We'll now talk about the

external and internal

absorption. The external and internal

absorption. Now listen very well. Their

difference is very simple. Their

difference is very simple. So external

absorption

I would like to define that external

absorption or divergence.

External divergence

or absorption

is

a situation

whereby

whereby price

absorbs

whereby price absorbs

whereby price absorbs.

Whereby price absorbs in order

in order to continue

in order to continue the

passive emphasis on passive.

in order to continue the passive

trend.

Emphasis on passive. So external

divergence or absorption is a situation

whereby

whereby

oh sorry there's even a mistake here

whereby

price absorbs

price absorbs in order to continue the

passive what the passive trend emphasis

on passive whereby price we have um in

order to continue the passive trend. All

right. So now what is uh exhaustion

absorption? Sorry, what is internal

divergence?

Internal divergence.

So that is external divergence or

absorption.

So this is internal divergence or

absorption. This is a situation.

This is a situation

whereby

price

absorbs

to continue

the

aggressive trend.

Price absorbs to continue the aggressive

trend.

Okay. Okay. So internal divergence or

absorption this is a situation whereby

price absorbs to continue

aggressive what aggressive trend. So

that is the situation of internal

divergence. That is the situation of

internal divergence. So now let's look

at examples of both

and let's try to understand what we are

talking about.

All right. So, basically, let's say we

have this.

So, let's say we have this.

We have a high, a low, higher high,

higher low, higher, higher low, higher

high. All right. Now, this is the normal

trend. Then price now starts reversing

and we now have this.

All right. These two are actually kind

of interchanging are interchanging. They

actually working in none is

none is independent of the other. None

is independent of the other. When there

is internal absorption automatically

uh it will it it will relate with

passive where there is external it will

relate with uh this is just to

understand what we are trying to talk

about that will make the difference. So

now the one in red that is our present

trend that is a sell. Why do we how do

we know it is our present trend? because

obviously price has not readed the

external liquidity of the uh initial

trend. So the initial trend is our

passive in this particular scenario. All

right. So how do we say external

happens? External D4 is a situation

whereby let's say we have an AOI here

meaning that this particular low is the

liquidity

is the potential liquidity rather before

the AOI that particular low is the

potential liquidity before the AOI. So

external simply means that since this

particular low

leads to this high

externally whereby you know at the high

this is our external liquidity at the

high.

All right. This is why you guys were um

this is why I sent structure video also

to the group. If you remember the first

day of the boot camp, I went ahead to

still send structure video at least be

able to identify structure. That is what

we use structure for just for

identification. Know when I say this is

external liquidity know what I mean by

external liquidity. All right. So that

is why that video was so don't think it

is completely useless. Okay. So now this

low here externally causes the break of

structure of the external liquidity that

is we having higher higher low higher

higher low higher higher low higher

higher low higher high. So this low that

is being absorbed is what creates

the higher high. Therefore if absorption

happen here

it is an external absorption. Why?

Because this low creates this external

liquidity is what leads us to the to the

external liquidity. That is what lead us

to the external liquidity. Okay. So this

low leads us to this external liquidity.

Hence if absorption happens here that is

let's say we have D minus S plus and we

have D plus S minus full absorption. It

means that we are buying here the

external liquidity is our target. That

is the implication because it is

external absorption that is happening.

The low that leads to the external

liquidity is what is being absorbed.

Hence the target is also the external

what? The external liquidity. That is

the target. External

it leads to the external. That is it.

That move is what leads to the what? to

the external liquidity. It can be more

than one. That is we could have it this.

All right. And then we have present

trend coming here.

Even if it is this low that is being

absorbed, this low right here is still

what lead us all the way higher higher

low higher low is still contribute to

what lead us to the what to the peak to

the external. So this being absorbed is

a reversal for the external liquidity as

the target. That is the implication. So

that is what that is what we mean by

external absorption. So what happened

here is what external

absorption.

That's what happened there. So what

happened there is external absorption.

Is that understood? So let's now take a

look at internal absorption.

Same example.

I will use the same example so that we

can get the picture.

So let's take a look at this.

Let's say at this low right here we have

D minus S+.

All right. And at this low here, look at

it. We have D plus

S+.

Okay. Ah, I think I will need to redraw

this so that we can have

a bigger picture.

So this is it. So we have here we have

and we now have the aggressors.

Now look at this clearly

at this load. this load that is being

absorbed

that no it is not being absorbed we

don't know yet so we have let's say D

minus S+

and here we have D +

S+

now we have this aggressor here even

though all of these are aggressor but of

course this present trend this immediate

one that breaks this low is also also an

aggressor internally to this particular

low that it rates. So let's now say the

the the coordinate of the aggressor that

we have here is D minus

S minus.

What did you notice here? The highest

volume O is not diverging for the

external. Don't forget this loop is what

lead us to the external.

This simply means that absorption is not

happening for this external. It is not

absorption is not happening for the

external. What price is diverging

against therefore is what is this is the

internal.

Okay, that is this particular low. And

which high does this low create? This

this low creates this high but in this

case this particular low creates what

creates up to the external liquidity

that is the difference. So this low here

creates this high that is the high it

creates but here this particular low

create this high. So what price is

diverging against is this high not the

external liquidity. So here we can look

for a reversal trade and take our buy.

But what is our target? This. So that is

why we call it internal divergence. That

is a divergence that happen between the

aggressors. All that trend is still

aggressor. But inside aggressor we still

have more aggressor. That is the that is

the fractal nature of price.

Inside aggressor we still have another

aggressor.

So it is this guy

which price is diverging against the

high that it formed. That is the one

price is going for. So that is our

internal diver. So which means

externally price is not diverging. Price

not absorbing this particular low here.

Price not absorbing this particular low

here show us that what we are still

bearish. That is what is the bearish

trend here? The bearish trend is the

aggressor trend. The one in red. is the

aggressor strength. It means that the

aggressor trend still continue in as

much what we have here is not a full

absorption. Even if the D minus D plus

all right even if they diverge and the

lower one has not been complete let's

say it remain weekly it remain daily it

is still possible for price to shift and

come and take the internal first if the

internal is already complete.

Okay. So the internal divergence is what

is this? So internal simply means the

aggressors trend. So which means the

aggressors are still in control and that

this buy you anticipating is just a

pullback because of this

and this alone is not limit to this.

This alone help us in a lot of ways to

now know

the right liquidity price is seeking

generally especially internally whereby

price want to continue structure. Okay.

This is why you will know that the case

of premium and discount is very relative

and it is very subjective.

It is very relative and it is very

subjective. Why is it relative and

subjective? For example,

I could have something like this.

All right. It might even seem like a

nice order block. I could have this and

this might seem like

um so let's say I have this aggressor

trend.

So let's look at this. Look at what is

happening here. So let's say for example

I have something like this. Uh based on

our

uh external let's say we have w minus d

+ s minus

and here we have at this low

this present load that is rated here.

Let's say we have

just uh even

so this let's say we even have just b

minus that is uh okay let's say we still

have w minus

uh sorry

okay so let's say we have at this low we

have w minus

That is what raise that low w minus d

um d minus s minus that is the

aggressor. So basically let's say here

we now have maybe this is the opening of

a new week. Here we now have um w plus

uh let's say we have um d plus

s minus. Okay. So look at this for

example. Look at this

here. This W minus

and W minus already show us that price

is not diverging.

That is what it shows with the hexter.

That is because this swing is what

creates this external liquidity

is what leads to that external liquid.

Price is not divergent. Let's say here

what we have is also W +

D + S minus. Look at what I'm talking

about. The aggressor

that read this low is also W plus and

this is also W plus.

But the aggressor that read this

particular one is W minus.

Hence the question is what is our

available liquidity internally because

externally of course we know that price

is still bearish and the aggressor trend

will continue. So obviously what this

guy is diverging against is this eye. So

this is our available what liquidity.

Please do we get that?

Please. Do we understand that?

Okay. Let me see what is not clear

there.

Missy, what part of it is not clear?

What part of it is not clear? Missy.

Missy said

she's not clear. Recap from where? I've

said a lot of things here. I've started

this class.

I've started this class since

why the second W plus no liquidity

because the aggressor that read it, this

is the aggressor that read it. The

aggressor that read it is not against

it. That is why it is not liquidity

except if this and this fully mitigate

each other. But I have not taught you

that one. We can have cases whereby this

and this fully mitigate each other. But

the moment they do not mitigate each

other clearly as we have seen right here

then obviously the aggressor that you is

what determine if you are being diverged

against. So if the aggressor that radio

because this low here the high it

creates is this that is why it is called

internal. That is the high it creates.

This low,

this low here is not the one that create

this now isn't it? This is the low that

c this and the aggressor that ra it is

not diverging against it. So obviously

it is not available except if they

mitigate each other that is when so

which I will talk about in a minute

from the liquidity price six

I really don't know where to start from

missy. I really don't know where to

start from please I would like you to be

more clear about your question like uh

Mr. Asaga asked now he asked why the

second one is not liquidity. Okay, you

have gotten it already. Okay. All right.

Thank you. So we can proceed.

So majorly

what price is diverging against is this

high

is this high because this low creates

this high. The only condition whereby

this internal divergence can go all the

way here before continuation is if this

range and this range mitigate each other

and I will give you an example of that

very soon and also I will give you an

example of that on chart. Is that

understood? So that's basically it. So

this

show us that price is continuing

downward. The question now is okay if

I'm to buy I want to take an anti-trend

trade the question is where should I buy

against that is the question where

should I buy against so if price is

showing you that okay this eye is the

one that is available based on the

aggressor that read it then that is what

you are buying against is that

understood so let's look at another case

whereby it is very possible

for both of them to be raided

So let's say for example I have

something like this.

I have this uh

I have this present trend.

Okay

I have this present trend. So after this

present trend we now have this

h sorry I said present trend passive

trend then we now have this particular

scenario

all right uh so

okay so let's say we have this this AOI

and then we now have price clear this

and then we have this and we now have

Another one here.

And we now have this. Now look at this.

So look at this. Uh we have externally

here.

Okay. It can actually happen at the

external liquidity as well. Let me even

use this as external liquidity. That is

your aggressors might have raided this.

Of course, for a complete reversal, they

might have even raided all of this. This

might start from here. Your aggressors

might have raided this external

liquidity. The the question is still

that this swing low is still what lead

us to this eye. So that is still your

external divergence price fully absorb

it. So let's say for example here now we

have

um d plus s minus and here we also have

d plus and uh we have s it can even be

this can even be a bigger distance

actually don't think they will always be

the same coordinate this right here

might be uh might be bigger

uh that is we could have externally here

we could have uh W minus D minus and

also here we can have W minus okay but

inside here you can have intraday okay

maybe it is here that another week just

open all of these can still be within

the same week all right so very possible

so we now have W minus D plus let me

even write still S minus so let's say

here we have D

uh let's say Here we have D minus.

All right. So D minus S+

and here we now have D minus.

Look at it. Look D minus uh maybe

uh S minus. Let me make this to be S+.

Now look at this.

We have D minus and we have D minus.

Okay, understood. So we have D minus and

we have D minus. How do you know if they

mitigate each other? That is what I want

to teach you. How do you know if it is

possible price to raid both of them

together? Now apart from your naked

eyes, you know the major the the whole

idea of HC is for you to to to to take

out anything like maybe you are using

your high to no mitigation. You are

using just your high to no liquidity.

That is the whole picture. Now look at

this. Even though full absorption does

not start here initially, but look at

what happen here. S plus from here and S

minus from here are diverging.

That is the sign that will validate for

you. If price want to absorb further up

to this high,

one of its element must diverge with

this other one. That is this move here

is the aggressor to this low. But yes,

fine. The major high there did not

diverge. That is very fine and that is

very good. Now, but look at one of its

elements here S plus and S minus is

already diverging.

All right. Is already diverging.

Therefore, when we have a full

divergence, now we are now have this

aggressor which is an aggressor to this

particular passive. Okay. If this now

give us as it has given us, remember

this W minus is just to show

continuation for the hexter. But we

interested in other element of this

aggressor which is D plus and S+ and

which therefore is a what? What is it?

Is a full divergence.

It is a full divergence of the what of

the last passive that it raised. Okay.

So in this case price will what? Will

buy and it will go ahead to read this

inclusively.

Why? Number one the AOI here has been

mitigated as proven. Okay. Number two

one of its element diverge but it is the

lower element. Hence this aggressor

fully diverging with its own low will

not just read this even though this will

be your first take profit will also read

this along with it before what

continuation. Okay. So that is the case

whereby we have that. So now we have

established what external divergence

looks like and we have established what

uh internal divergence looks like.

Internal is simply when externally

divergence is not yet complete.

And internally divergence is complete.

So you know the available liquidity and

that liquidity is what I was saying when

I was teaching AOI. That is the one I

said it let you validate your AOI. Okay.

By the time we'll be talking about

momentum absorption. I don't want to

teach momentum absorption tonight. It

will be too much. Momentum absorption is

a little bit technical and that is the

only part. Once we are done with

momentum absorption, we're actually done

with this boot cap. That is the truth.

HBO3 is just one class and it is very

direct. I can finish HBO3 in 15 minutes.

I can finish it in 15 minutes. Okay. I

can finish the HP3 in 15 minutes. HBO3

is very direct. It's a very direct

thing. Okay. So, our last major class is

actually tomorrow where I'll be teaching

and of course you don't even expect to

grasp everything once. You need your

practice and also you need live trading

session. All right, that is why we do

live trading session. That is where you

keep mastering and keep getting

understanding. So don't think oh this

boot camp is everything. So why then is

is their mentorship if this boot camp is

everything and you just start making

money on your own. No. So the more you

see me applying it in live market, the

more you have confidence in it and the

more you get to understand it better.

All right. So that is why it is

mentorship

and not uh

and not just courses videos. Okay. So

exhaustion absorption that is everything

about exhaustion absorption. Now I I

said something when I was teaching uh

AOI. I said that your valid AOI is not

just by uh the AOI that looks all

mitigated even okay that AOI breaks

structure and it is unmitigated yes that

is fine that's cool but when there is

much volatility that is what causes much

more imbalance remember that volatility

and imbalance are relatively the same.

So when there is much volatility and

that is why you will see that if most

people that trade SMC and that are very

profitable if they show you their data

you see that most of them don't trade

news why don't they trade news because

newses

volatility and if you don't understand

true liquidity and what not you can't

trade news you can't so your true

liquidity your liquidity will always

work based on SMC level for the basics.

That is why you see that they always

avoid news. But when you are trading

high impact news, you know, junior high

impact news imbalance, there is a lot of

imbalance that can occur. Remember what

we said? We say that what imbalance is a

situation whereby what

the the the effect of the passive is

being limited. That is passive areas are

being violated. that a white that looks

interesting and fresh you see price

violating it anyhow that means that

process is the process of imbalance

violation of an area of interest of an

area that price ought to actually

mitigate that is imbalance but it is an

opposite to absorption absorption is now

when passive orders are greater than

what than aggressor aggressor imbalance

is When aggressors are greater than

passive that is they are validating it.

Okay that is they limiting the effect of

the passive but in the case of

absorption it is the passive it is it is

other way around. So that is why we say

absorption is liquidity that is

liquidity. Okay. Why imbalance is not

liquidity? Imbalance is volatility.

Is that understood? and volatility and

in uh and liquidity are inversely

proportional. The higher the volatility,

the lesser the whatever and all that. So

that is basically how it works. Okay. So

I said something that an AOI

that will be valid that if I have a

certain AOI here let's say I have

multiple AOI that looks valid

the question is an AOI can even be as

liquidity that is it and that is what

divergence let you know so let's say for

example at this particular low here

price is already diver diverging

internally. Let's say externally we know

that price want to continue downward.

But now the question is which AOI of

these two will price use? Oh, it is very

simple. The question is this particular

one here is price diverging against it.

That is let's say we have D minus S

minus and you now have the aggressor

that read it to be D plus would also

even be S minus. Maybe you are now

waiting for the sessional to finally

conflence with it to take the trade. If

this is the case, then whatever buy that

you are buying here,

okay, is towards where is towards this

guy. That is it. It is towards this eye

rather. That is it. So which means this

AOI will be validated before your sells

and therefore the valid AOI will be the

one to be mitigated. Why? because it is

the market maker that stays here that is

actually calling price towards itself.

Okay, that is the one that is calling

price towards itself. That is how you

identify true liquidity. True liquidity

is not by your naked eyes. It is by

understanding which of these area is

calling price which AOI is calling price

towards itself. It is possible at times

that both of them will call price

towards themsel. So that is what we call

by side in efficiency set and side

imbalance say not ICT now but just based

on understanding. So for example let's

say this is D minus trouble connecting

to the

sermon.

So let's say for example this right here

let's say this is another day now price

went ahead and go to uh let's say

another day is that understood so let's

say the valid yeah here is d minus s um

look at this so d so let's say here this

particular one is d minus s minus this

one here.

Sorry.

Pay attention to what I want to say

here.

Pay attention to what I want to say

here.

So let's say for example this is D minus

S minus and the aggressor that read it

is D plus but S minus that is session is

not complete. And now a new day now

opens.

Let's say here,

right here

is a new day. Okay. And we now have

something like this.

So a new day opens.

And what that new day gives is let's say

um

D minus. Look at it. D minus S+

a new day opened and it gives us here a

new day open

and it give us D minus S+. What did you

notice here?

Even though here has given us S+ that is

complete for maybe what is happening

here but the fact that this particular

liquidity is available.

Okay, this particular liquidity is

available based on price and this one

give a complete divergence immediately

that is D plus S minus D minus S+ it is

very possible look at it might now be

that same day price might go first here

use this AOI because it is fresh and

because an a liquidity is actually

engineered towards it liquidity is

actually engineered towards it and don't

forget the AOI that we said is calling

this they do not even mitigate each

other. So that's really cool. It simply

means that what price wants to do in

that scenario is that this particular

one that gives immediate full divergence

with this particular low could what

could diverge against this first. Then

the question is how will you know if

that is true? What you will notice that

will happen there is that immediately

price read this guy this particular one

price will do an immediate full

divergence again which means let's say

this eye here is uh D

uh D plus

uh it can even be another high that

formed this actually very possible so

that is another session I high so let's

say this is D + S+ and what's now come

to rad it is D minus

S minus if price should do immediately

in this is a valid AOI and that one also

use this particular high.

It uses this particular eye to call

price to itself and when price now it

price does immediately price does what?

Price does a full absorption immediately

for it. That is to tell you that price

wants to what? First create a lower low

again.

At least price will create a lower low

then before that same day that can now

start a buy that same particular last

day that's already present the S+ that

is missing here can now start the buy

that will start now coming towards this

particular high all these things are

simple you just need to rewatch the

video over and over again it is still

the same thing we are talking about I'm

just trying to show different cases I

don't even need to tell you this

particular one you always know the major

thing you need to understand is

absorption. Of course, if you see

absorption here and you see a valued AOI

above it, you should know that you

should sell. You should know that you

should sell. So, all of these things are

actually simple. All right? They

actually simple. Okay? So, and they are

very direct. So, you just need to what?

You just need to watch the video,

practice and of course attend live

session to get the understanding. So,

and that is everything about

absorb what internal and external

absorption. That is that is everything

actually about exhaustion

absorption. So the next one we'll be

talking about tomorrow whereby we'll be

rounding off on everything. In fact it

might be that tomorrow that I also teach

HBO3

so that I can round up this boot camp

already. So that is

that is the one we'll be talking about.

So look at this here. Look at this

particular example here. This low here

is we are still within the same month.

We are still within March. So this low

here is W minus that is the ISO there.

And the aggressor that came to is also W

minus. So I don't need to show the other

one etc. That's why I put ETC. So in

that case what happens we say that price

already that means that is showing us

that price still want to continue

downward. But look at the internal here.

Here was W plus. All right. Price opened

as a seller here. This is the open of

the week and it flipped to a buy here.

So buyers take the high and they take

the low. You can go and use that as your

assignment and look at that is still a

recent PA on EU. Just go to 4hour time

frame. You will easily see this

particular structure. All right. So

price now

uh so price now here we have W plus. So

here the only thing missing was that

this day was D minus and this particular

day also was D minus but it was W minus.

This one opened as a buy and flipped to

a sell order here. So it was D minus D

minus. That's why that buy did not start

that day. Okay. So here has already

shown us continuation that we are still

going that one. But here what happened

here is internal absorption because full

absorption happen here. We have W plus

and we have W minus. So we just waited

for the second day which now give D+

that is what we waited for. So D was the

major thing that was missing here. So we

waited for for the second day

which gave us the D plus and then we

took the buy. In fact that buyer posted

it on my Twitter. I spoke about this

particular thing in the video I released

on Twitter. Was it day before yesterday?

I actually spoke about this particular

example FOMC. I've been there before

happened around here and it just push

price more to my direction. So that is

internal absorption and of course this

low creates this high. So that is your

target. So that is internal what that is

internal absorption that we have been

talking about. Okay. So it can be

sessional too. Don't even deceive

yourself. Don't think here now we have a

same day. All right. Same day. This is

this day and this is also that same day

that is still still raiding each other.

Now we are in London. So London diverge

against Frankfurt. I think London was a

buy. Yes, London was a buy and

yes London was a buyer. Frankurt was a

sell. So it was London that came to rate

this low and this low is what leads to

this high. So this low is from

Frankfurt. This impulse is from London.

So they diverge against each other and

after uh HPO3 counting which we will

talk more on what happened this buy

started in the same uh the buy started

in the same London as you can see the

buy started in the same London we are

still within the same day same oh okay

price is not diverging of course the day

did not flip and so price is not

diverging against this eye so the only

thing price is diverging against

internally is the what is where we have

that internal diver I immediately price

read it a little price continue its

price action. So London was still the

one that started that same buy. So that

is what that is internal divergence.

We'll go to momentum absorption but let

me before that let me show you more

example on chart before I round off the

class. So I will share my chart screen

now.

All right.

So I will I will share my chart screen

now. this particular buy I don't expect

it I don't expect the sell to continue

that's why I did not even bother myself

today price will probably just trap

people I still expect this high as

liquidity even if price will continue

and it is still based on this same

internal divergence because this is what

is calling price the sale that happened

here like I said it is very possible

this one also price called it that's why

price use it and where is price selling

to price is just maybe selling to this

particular low The whole thing that is

coding price is actually this high and I

will show you guys that one as the final

example. But let's first um

deal with some example here before we do

this. So let's first see this particular

area here. Why is it that that is the

available liquidity we marked during our

live session last week as what price is

targeting.

All right. So as what price is

targeting? So let's see what why is it

that

I need to go very soon. So why is it

that we have that? Um let me see

hopefully our network will help us.

So here this low was formed in London.

No sorry this eye is London open. Yes it

was actually this this low. So this low

was formed in Frankfurt. All right,

Frankurt is open is 7 a.m. while London

open by 8:00 a.m. Okay, so Frankurt

open. Let's check what is the open range

of Frankfurt.

I'm coming a minute, please.

Let's go to one minute time frame.

Let's go to one minute time frame. So

let's check for

Let's check for open

7 a.m. So Frankford open as a sell lower

price sold first. As you can see this

momentum candle price keep clearing the

low first. It didn't even clear the high

or made the target. So price keep going

down. Then let's now come to London.

London open here. Can you see 8 a.m.

This is 800. And London was a buy open

range. So which means at this low who

are there? S what S minus from

Frankfurt. This is 7:58. London has not

opened then. Then London open as a buy.

All right. And it is the same London.

They clear the high. They clear the low.

Still being sponsored by buyers. So it

is bias data here and meanwhile don't

forget this low is what leads to the

creation of this high that is internal

divergence. So which means that what

this eye is being what is being called.

So this is the reason why that high was

available as true liquidity if it was

when I was I see many people doing that

mistake. All right. Even one of you here

that I warned though she because she's

new, she still followed her plan and

still tried to sell at this particular

range as a valid order block or

something. But I told her since since

Tuesday that we ended the call that

price will read that high, she didn't

listen. So but that is fine because she

is new. But of course when she herself

see exactly that price went for that

high. So that's why this eye was called

on Tuesday. If you are on Tuesday call

last week I told you we are looking for

a buy and we are targeting exactly this

high on Tuesday. So let's see that since

Tuesday started a buy and I told you

guys that you can easily be trapped and

this is the case whereby I told you that

it is very possible price can what obey

price can obey uh this first let me do

the this thing but that does not mean

price will not come to that liquidity.

So look at it on Tuesday was when we had

our call. Of course our live session is

usually Tuesday but it's very possible I

told you categorically in the live call

I told you hope you realize that this

thing you can easily get trapped here

that full absorption is already

happening at this high. I said it on

Tuesday if you were in class that full

absorption is happening at this high but

based on HPO3 day 1 day 2 day three I

still knew that the buy will probably

start towards our major liquidity prices

targeting. I knew it would start. So on

to the full absorption

happened here. That's why I was telling

you that a valid AOI there was a certain

valid AOI a very clean AOI that wasn't

mitigated.

So that one also call price towards

itself. Uh this AOI here yes this

particular you know anytime you have a

momentum candle you have momentum candle

here in balance. Momentum candle in

balance I told you you keep checking

your left. So when you check your left

you will see this ne ai that did what

that leads to the break of all this key

level this low this low this low from

this mi so that is a valid properly

unmititigated

area of interest all right unmit

mitigated area of interest what did you

see that is exactly so full absorption

started here this place was I think D

minus s minus And this particular day

opened as a buy. Clear the high, clear

the low, met the target. And exactly

here we have D plus S+

D plus S+. Exactly. So full absorption.

So that is to tell you price still want

to sell one more time. That's what I was

trying to explain

uh in the in my last statement during

the explanation. So that this will be

your clue. The moment you still see that

there is a full absorption that is to

tell you that price want to go lower. In

fact, you can have this in a bigger

sense. So that's why I said you don't

need to cram anything. Your major focus

should actually be the ability to

coordinate. I told you coordinate should

be something that for the next one month

you are still practicing and trying to

get correction on coordinate. after

coordinates. Just know that if you have

full absorption, all right, even if it

seems full absorption is happening at

the low, but if another full absorption

happen at the high here, it simply means

that price might still want to sell one

more time or might still want to buy one

more time. Very very important warning.

Full absorption is not something you

want to take as uh for for granted.

Okay. So this high obviously is what

lead all the way to this external

liquidity. So if full absorption is

happening here where is the target

obviously the external liquidity

obviously. So it shows you that price

still want to sell one more what one

more time to the external liquidity.

That is what it is telling you. The

momentful absorption happened at this

high and immediately price read that of

course our buy started towards where

towards exactly the high that we said is

available. All right, that particular

person sold here.

But it is fine because you guys are

still new. But you will see except if

you don't even know what you are doing.

The moment you see a concept like this,

you should know that this probably is

your missing piece. It's just the

reality.

This probably should be your missing

piece to everything that you might be

missing from where you are coming from.

That is just the reality. So full

absorption

happened that's why that and immediately

that was met and we have a what we have

that and of course full absorption

happened here too. Don't forget I told

you guys this particular open day. So go

and check all these go and use it as

practice yourself. 1 minute can still

reach here. This day opened as a buy

opening range. It cleared the high, they

cleared the low, they met the target and

this low exactly this low is what is the

flip point. So which means that this low

was D+ and now they flip to sellers. So

that is what we call self flip or self

divergence.

Okay. The moment a certain ISO diverge

against itself immediately