Absorption¶
v.1.4.0.0 Order Flow+ (Volumetric)
Overview¶
Finds absorption: one side trades aggressively while the price hardly moves - its orders are soaked up by the other side. Such places often precede a reversal or mark where large participants accumulate or distribute. The zone is drawn as a box split in proportion to buying and selling volume, with the numbers above it.
How it works¶
- Over the last Lookback bars the price range stays under Price threshold % of their low.
- One side's volume outweighs the other's by more than Volume ratio.
- The zone is drawn: green - buying absorbed, red - selling absorbed; text: buy volume, sell volume, ratio, range %.
Parameters¶
| Parameter | Default | What it does |
|---|---|---|
| Lookback Period | 3 | Number of bars to look back for absorption detection. |
| Price Threshold (%) | 0.05 | Maximum allowed price movement (as a percentage) to consider absorption. |
| Volume Ratio | 3 | Minimum volume ratio between buy and sell volume to qualify as absorption. |
| Buy side color | green | Color used to highlight buy side absorption. |
| Sell side color | red | Color used to highlight sell side absorption. |
| Absorption opacity | 25 | Set opacity value from 0 to 100 for absorption rectangle. |
| Volume source | Volumetric | Volumetric: the buy and sell volumes traded at the ask and the bid, from a Volumetric series - exact, built from ticks. Bars: estimated from the chart's bars by where each closed in its range - any history, fast. |
Volume source¶
| Source | Buy and sell volume |
|---|---|
| Volumetric | Traded at the ask and at the bid, from a Volumetric series - exact; needs Order Flow+. |
| Bars | Estimated from each bar by where it closed in its range - any chart, fast. |
For strategies¶
| Value | Meaning |
|---|---|
| Abs | 1 buy absorption, -1 sell absorption, 0 none. |
| Lowest / Highest | The zone's low and high. |
Version history¶
v.1.4.0.0 - October 2026
- Changed: drawn directly on the chart - no drawing objects left on it.
Earlier versions
v.1.3.0.0 - October 2026
- Added: Volume source - Volumetric or estimated from the bars.