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Absorption Structure Detector v2.3

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Absorption Structure Detector v2.3

A price-action based tool designed to identify absorption candles at key structural levels, helping traders spot potential reversals and continuation points with clarity and discipline.

Overview

The Absorption Structure Detector highlights candles where strong opposing pressure is absorbed by market participants, often signalling a shift in control between buyers and sellers.

Rather than relying on lagging indicators, this tool focuses on pure price behaviour, combining wick structure, candle positioning, and contextual filters to identify high-probability zones.

Core Logic

The indicator detects absorption based on:

Dominant wick structure (rejection of price)

Controlled candle body size (inefficiency / absorption)

Strong closing position (shift in control)

Optional liquidity sweep detection (false breakouts)

Optional trend filter (EMA)

Optional pivot proximity filter (structure alignment)

Optional RSI divergence filter (momentum confirmation)

A built-in quality scoring system (1–5) ensures that only higher-confluence setups are considered when desired.

How to Use

This indicator is designed for higher timeframe trading, particularly:

Daily (primary)

4H (secondary confirmation)

Bullish Setup

Price reaches a key support level

Bullish absorption candle forms

Enter on break of the candle high

Stop below the candle low

Target 2:1 or next structure level

Bearish Setup

Price reaches resistance

Bearish absorption candle forms

Enter on break of the candle low

Stop above the candle high

Target 2:1 or next structure level

Key Features

Clean visual identification of absorption candles

Built-in trend alignment filter (EMA)

Liquidity sweep detection for false breakout scenarios

Pivot-based structure filtering

Adjustable quality threshold to reduce noise

Optional entry, stop, and 2R target plotting

Alert conditions for bullish and bearish setups

Important Notes

This tool performs best when used at key structural levels

It is not designed for low timeframe scalping

Signals should be used with context and discipline, not in isolation

Fewer, higher-quality setups are preferred over frequent trading

Philosophy

The Absorption Structure Detector is built around a simple idea:

Markets turn when pressure is absorbed and control shifts.

This tool helps visualise those moments — the rest is execution and discipline.

Final Thought

This is not a “signal generator” to follow blindly.
It is a decision support tool designed to improve timing and clarity within a structured trading plan.

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