OPEN-SOURCE SCRIPT
Institutional absorption score
Institutional Absorption Score (IAS)
Institutions don't buy all at once they accumulate slowly, hiding their footprint inside boring, low-range candles with high volume. By the time the breakout is obvious, they're already in. This indicator tries to catch them in the act by scoring how much of that absorption is happening right now.
How It Works
The score runs from 0 to 100 and checks for these things -> Is volume elevated but the candle barely moved? Is the range tight relative to recent volatility? Someone's holding price in a zone. Are lows quietly stepping up even though the chart looks sideways?. Each of these gets weighted and combined into a single score.
Reading the Score
Red means nothing interesting is happening, move on. Orange is worth a second look but don't act yet. Yellow is where you start watching closely absorption is building. Green means multiple things are aligning and institutions are likely active. Lime is the serious zone — this is where breakouts tend to come from, often when most traders are still bored.
Settings
Lookback Period — how far back the indicator looks to define "normal" volume and volatility. Increase it on noisy assets, lower it if you want faster reactions.
Volume Multiplier — sets the bar for what counts as high volume. If your asset is naturally volatile, push this higher so random spikes don't inflate the score.
Max Body/Range Ratio — how small the candle body needs to be. Lower values mean only very indecisive candles count, which is stricter but more precise.
Max Range % of ATR — filters for compressed candles. If price is moving freely, it's not being absorbed — this setting enforces that.
Higher Lows Lookback — how many bars back to check for a higher low structure forming underneath.
Score Smoothing — irons out bar-to-bar noise. Crank it up if the score feels jumpy, lower it if you want to catch signals earlier.
Institutions don't buy all at once they accumulate slowly, hiding their footprint inside boring, low-range candles with high volume. By the time the breakout is obvious, they're already in. This indicator tries to catch them in the act by scoring how much of that absorption is happening right now.
How It Works
The score runs from 0 to 100 and checks for these things -> Is volume elevated but the candle barely moved? Is the range tight relative to recent volatility? Someone's holding price in a zone. Are lows quietly stepping up even though the chart looks sideways?. Each of these gets weighted and combined into a single score.
Reading the Score
Red means nothing interesting is happening, move on. Orange is worth a second look but don't act yet. Yellow is where you start watching closely absorption is building. Green means multiple things are aligning and institutions are likely active. Lime is the serious zone — this is where breakouts tend to come from, often when most traders are still bored.
Settings
Lookback Period — how far back the indicator looks to define "normal" volume and volatility. Increase it on noisy assets, lower it if you want faster reactions.
Volume Multiplier — sets the bar for what counts as high volume. If your asset is naturally volatile, push this higher so random spikes don't inflate the score.
Max Body/Range Ratio — how small the candle body needs to be. Lower values mean only very indecisive candles count, which is stricter but more precise.
Max Range % of ATR — filters for compressed candles. If price is moving freely, it's not being absorbed — this setting enforces that.
Higher Lows Lookback — how many bars back to check for a higher low structure forming underneath.
Score Smoothing — irons out bar-to-bar noise. Crank it up if the score feels jumpy, lower it if you want to catch signals earlier.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.