Absorption Strategy¶
v.3.1.0.0 Built on Strategy Core Order Flow+
Overview¶
Trades absorption: one side trades aggressively while the price barely moves, its orders soaked up by the other side. The strategy enters in the direction of the side doing the absorbing, with the stop and target measured from the absorption zone.
How it trades¶
- Over the last Lookback bars the price range stays under Price threshold % (the Absorption indicator's rule).
- One side's volume outweighs the other's by more than Volume ratio: buying absorbed is a long, selling absorbed a short.
- The stop goes Stop ratio widths of the zone beyond it, the target Target ratio widths from the entry (Mode = Strategy).
Parameters¶
| Parameter | Default | What it does |
|---|---|---|
| Order flow source | Ticks | Where the indicator takes the buy and sell volumes. Ticks: a Volumetric series (bid / ask) - the real aggressor split, built from tick data. Bars: estimated from the chart's bars by where each closed in its range - a rough proxy for long histories without ticks, fast. |
| Lookback (bars) | 3 | The bars the absorption is looked for over. |
| Price threshold (%) | 0.05 | The price barely moved: the bars' range under this share of their low. |
| Volume ratio | 3 | One side's volume more than this many times the other's. |
| Stop ratio | 3 | With the Stop loss group's Mode = Strategy: the stop this many zone widths beyond the zone. |
| Target ratio | 10 | With the Profit target group's Mode = Strategy: the target this many zone widths from the entry. |
| Buy side color | green | The indicator's colour for buying absorption. |
| Sell side color | red | The indicator's colour for selling absorption. |
| Absorption opacity | 25 | The opacity of the indicator's zones. |
Core settings¶
Order handling, position size, stops and targets, trade management, trading hours, account limits and the ML Engine are core settings - the same in every strategy. Hover a group or a core term for a short explanation.
Strategy Core General & Orders Quantity & Scaling Stop loss & Profit target Trade management Sessions & time Money & News ML Engine Log & Report
Core defaults¶
This strategy starts with these core settings; change any of them in its settings.
| Group | Setting | Default |
|---|---|---|
| NinjaTrader | Calculate | On each tick |
| Stop loss | Mode | Strategy |
| Profit target | Mode | Strategy |
| Quantity | Mode | Risk money |
| Quantity | Risk | 250 |
| Quantity | Max | 70 |
| Trail stop (off) | Mode | Extremum |
| Trail stop (off) | Bars look back | 14 |
| Trail stop (off) | Offset (ticks) | 1 |
| Money management (off) | Daily loss | 1000 |
| Money management (off) | Daily profit | 2500 |
Requirements¶
- Order flow source = Ticks: a Volumetric series (Order Flow+) built from ticks - exact, slower backtests. Bars: estimated from the chart - any data, fast.
Version history¶
v.3.1.0.0 - October 2026
- Changed: the signal follows NinjaTrader's Calculate setting - On each tick by default, so it is taken inside the bar, the moment it appears.
Earlier versions
v.3.0.0.0 - October 2026
- Rebuilt on the Strategy Core: orders, sizing, stops and targets, trade management, sessions, limits and the ML Engine are core settings.
- Added: Order flow source (Ticks / Bars).
v.2.1.0.0 - May 25, 2026
- Direction forecast: added COT (Commitment of Traders) features.
v.2.0.0.0 - Mar 9, 2026
- ML Engine filter feature added.
v.1.0.0.1 - Oct 26, 2025
- Trading hours and days logic updated — if all sessions are disabled, the strategy now runs without time restrictions instead of stopping trading.