# Absorption

Absorption is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

Watches confirmed swing highs and lows for absorption: levels that repeatedly reject heavy volume without breaking. A zone qualifies after 3 tests whose heaviest bar reaches 1.5x average volume with a stalled-result signature, then resolves as held or broken using ATR-scaled margins, with test markers, live statistics and eight alerts along the way.

- Indicator in the LuxAlgo Library, by LuxAlgo, published May 14, 2026.
- Access: free.
- Concepts: [Absorption](https://www.luxalgo.com/library/concept/absorption/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=w7djp9vqpqjujclfl8q1uuqk
- Page: https://www.luxalgo.com/library/indicator/absorption/

**Absorption** turns the order-flow read of heavy effort meeting an unmoving level into a measurable chart object. Confirmed swing lows and highs anchor candidate zones, each approach is graded for [absorption](https://www.luxalgo.com/library/concept/absorption/) (elevated volume met by a narrow spread or a close finishing far from the tested extreme), and a zone is flagged once enough tests are rejected. The market then settles it: an easy departure confirms the level held, a decisive break refutes it.

## How to Trade the Absorption?

- **Zone flagged**: support absorbing heavy selling reads potentially bullish, resistance absorbing heavy buying bearish; the fill darkens as tests accumulate.
- **Level held**: a close beyond the zone by the Departure Distance confirms the resting side took everything.
- **Level broken**: a close through the zone by the Break Margin refutes the read. The aggressive side won.

Zones that never resolve freeze at the timeout, and the statistics label tracks test count, average effort and tightening probes. The build reads best beside the rest of the [Wyckoff toolkit](https://www.luxalgo.com/library/family/wyckoff/).

## Absorption Settings

- **Support Absorption (Bullish)** and **Resistance Absorption (Bearish)** (both on): which side to watch.
- **Swing Length** (default 5): bars confirming the anchoring swings.
- **Required Tests** (default 3): rejections needed to flag a zone.
- **Average Length** (default 20): baseline for volume and bar range.
- **Elevated Volume** (default 1.5): volume multiple the heaviest test bar must reach.
- **Narrow Spread** (default 0.75): range multiple below which a bar reads narrow.
- **Close Off Extreme %** (default 50): alternative signature, a close this far off the tested extreme.
- **Zone Width** (default 0.25), **ATR Length** (default 14), **Break Margin** (default 0.5), **Departure Distance** (default 1.0): ATR-scaled geometry and resolution margins.
- **Zone Timeout** (default 500), **Test Markers** (on), **Zone Statistics** (on), **Resolved Zones Kept** (default 8): housekeeping and display.

## Frequently Asked Questions

### How is Absorption different from Stopping Volume?

[Stopping Volume](https://www.luxalgo.com/library/indicator/stopping-volume/) is a climactic single-event read: heavy downside volume halting a decline. Absorption accumulates across repeated tests of one level and demands explicit resolution before calling the outcome.

### What exactly counts as a test?

An approach (first zone contact until price leaves) counts when its heaviest bar reaches the Elevated Volume multiple and a bar shows the stalled-result signature. Hovering a test marker shows its effort.

### Does it work on symbols without volume?

No. Effort is the measured input, so symbols reporting no volume get a warning label instead of zones.

## Related indicators

- [Trading-range Position](https://www.luxalgo.com/library/indicator/trading-range-position/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/trading-range-position.md
- [Wyckoff Wave & Volume Studies](https://www.luxalgo.com/library/indicator/wyckoff-wave-and-volume-studies/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/wyckoff-wave-and-volume-studies.md
- [Re-accumulation vs Re-distribution Diagnosis](https://www.luxalgo.com/library/indicator/re-accumulation-vs-re-distribution-diagnosis/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/re-accumulation-vs-re-distribution-diagnosis.md
- [Nine Buying/selling Tests](https://www.luxalgo.com/library/indicator/nine-buying-selling-tests/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/nine-buying-selling-tests.md
- [Point & Figure Cause Counting](https://www.luxalgo.com/library/indicator/point-and-figure-cause-counting/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/point-and-figure-cause-counting.md
- [Cause & Effect](https://www.luxalgo.com/library/indicator/cause-and-effect/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/cause-and-effect.md
- [Wyckoff Method](https://www.luxalgo.com/library/indicator/wyckoff-method/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/wyckoff-method.md
- [Spring](https://www.luxalgo.com/library/indicator/spring/) (Wyckoff): markdown at https://www.luxalgo.com/library/indicator/spring.md

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Source: https://www.luxalgo.com/library/indicator/absorption/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
