Absorption
Absorption: bars with heavy one-sided taker volume while price barely moved, showing passive orders soaking up aggression.
How to read it
- Marked above the bar: aggressive buying that could not lift price.
- Marked below the bar: aggressive selling that could not push price down.
- Absorption at a key level often precedes a reversal from it.
Key settings
- Length 20; minimum delta z-score 2.
- Maximum net move 0.4 × ATR.
Good to know
- Drawn on the price pane, over the candles.
- Needs per-bar delta (taker volume) from the venue or recorded trades.