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 (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.

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?

What exactly counts as a test?

Does it work on symbols without volume?