Smart Money Absorption Radar | Thomas
INTRODUCTION
I am pleased to introduce Smart Money Absorption Radar | Thomas, a technical analysis indicator developed to help traders study potential buying and selling pressure through volume behavior, candle structure, rejection wicks, and liquidity sweep conditions.
Markets constantly move between periods of buying pressure, selling pressure, consolidation, and expansion. Understanding these conditions can help traders develop a more structured approach to market analysis.
The purpose of this indicator is to bring several useful technical elements together in one place, making it easier to observe potential market pressure and important price reactions without unnecessarily cluttering the chart.
This tool is designed for traders who prefer a combination of volume analysis, price action, liquidity concepts, and automatic trade-level calculations.
1. BUYER ABSORPTION DETECTION
The indicator identifies potential buyer absorption conditions by examining bullish candle structure, lower-wick rejection, and relative volume activity.
When price moves lower but shows a strong rejection from the lower area of a candle, it may indicate that selling pressure is being absorbed by buying activity.
The indicator evaluates these conditions to highlight potential bullish absorption areas.
What traders can observe:
Bullish rejection candles
Increased relative volume
Potential buying pressure
Possible reactions around liquidity areas
These conditions are estimates based on available candle and volume data, not confirmation of actual institutional orders.
2. SELLER ABSORPTION DETECTION
Seller Absorption Detection focuses on potential selling pressure.
When price moves higher but experiences rejection from the upper part of a candle, it may indicate that buying pressure is being absorbed by selling activity.
The indicator evaluates bearish candle structure, upper-wick rejection, and relative volume conditions to identify potential seller absorption.
Key observations include:
Bearish rejection candles
Increased relative volume
Potential selling pressure
Possible bearish reactions near recent highs
These signals are intended to support technical analysis rather than predict every market reversal.
3. VOLUME SPIKE ANALYSIS
Volume plays an important role in understanding market participation.
Smart Money Absorption Radar compares current volume with its average volume to identify periods of increased activity.
When volume rises above its average, it can indicate increased participation during that candle.
This feature helps traders observe:
Unusual volume activity
Relative volume expansion
Stronger market participation
Potentially important price reactions
High volume alone does not confirm a bullish or bearish direction. It should always be evaluated alongside price structure.
4. LIQUIDITY SWEEP DETECTION
Liquidity Sweep Detection evaluates price movements around recent swing highs and swing lows.
A potential liquidity sweep occurs when price moves beyond a previous high or low and then shows a rejection or reversal-type candle structure.
The indicator uses recent price levels and candle conditions to identify potential sweep events.
Bullish sweep conditions may include:
Price moving below a recent low
Rejection from the lower price area
Bullish candle structure
Supporting volume conditions
Bearish sweep conditions may include:
Price moving above a recent high
Rejection from the upper price area
Bearish candle structure
Supporting volume conditions
Liquidity sweep signals should be considered potential technical events, not proof that a specific institution or market participant has taken liquidity.
5. AUTOMATIC ENTRY, STOP LOSS & TARGETS
One of the key features of this indicator is its automatic trade-level calculation.
When a valid BUY or SELL condition is generated, the indicator can display calculated levels directly on the chart.
The automatic levels include:
Entry
Stop Loss
Take Profit 1
Take Profit 2
Take Profit 3
The stop-loss distance is calculated using ATR-based volatility, while the take-profit levels are calculated using configurable risk-to-reward settings.
Risk-to-Reward Settings:
TP1: 1:1
TP2: 1:2
TP3: 1:3
These are the default target settings and can be adjusted according to individual trading preferences.
The displayed levels are calculation-based reference points. They do not guarantee that price will reach any target.
6. RADAR DASHBOARD
The indicator includes a compact dashboard designed to provide a quick overview of selected market conditions.
The dashboard helps traders monitor:
Volume activity
Buyer pressure estimate
Seller pressure estimate
Market pressure
EMA trend direction
Latest signal information
Instead of checking every individual condition separately, traders can use the dashboard as an additional reference during their analysis.
The dashboard is intended to support decision-making, not replace independent chart analysis.
7. TREND CONFIRMATION
Trend confirmation is included through an optional EMA filter.
This helps traders evaluate potential signals in relation to the selected trend direction.
A bullish setup can be evaluated alongside the broader EMA trend, while bearish conditions can be assessed in the opposite direction.
The EMA filter is optional, allowing traders to configure the indicator according to their preferred trading approach.
8. SIGNAL FILTER & COOLDOWN
The indicator includes signal-filtering conditions designed to reduce repeated signals during closely spaced market movements.
A cooldown setting helps control how frequently new signals can appear.
Additional conditions, such as volume activity, rejection structure, and optional liquidity sweep confirmation, help make signal generation more selective.
However, no filtering system can eliminate false signals or guarantee accurate market direction.
9.HOW TO USE THE INDICATOR
For a more structured analysis, traders may follow this general process:
Step 1 — Check the Market Trend
Start by observing the overall price structure and EMA trend direction.
Step 2 — Observe Volume Activity
Check whether current volume is showing increased activity compared with its average.
Step 3 — Study Absorption Conditions
Look for potential buyer or seller absorption signals supported by candle structure and rejection wicks.
Step 4 — Check Liquidity Areas
Observe whether price has interacted with recent swing highs or swing lows.
Step 5 — Review the Dashboard
Use the dashboard to understand the indicator's current market-pressure estimates and latest signal.
Step 6 — Review Automatic Trade Levels
If a valid signal appears, examine the calculated Entry, Stop Loss, TP1, TP2, and TP3 levels.
Always consider market structure, volatility, spread, and your personal risk management before taking a trade.
10.RECOMMENDED MARKETS
This indicator is intended to be tested on liquid markets where volume and price data are available.
Primary markets:
Gold — XAUUSD
Bitcoin — BTCUSD
Suggested starting timeframe: 1H
11.Important Note
The elements you see on the chart such as the liquidity sweeps and trend lines.were added by me for the purpose of identification they are not part of the indicator itself.
I am pleased to introduce Smart Money Absorption Radar | Thomas, a technical analysis indicator developed to help traders study potential buying and selling pressure through volume behavior, candle structure, rejection wicks, and liquidity sweep conditions.
Markets constantly move between periods of buying pressure, selling pressure, consolidation, and expansion. Understanding these conditions can help traders develop a more structured approach to market analysis.
The purpose of this indicator is to bring several useful technical elements together in one place, making it easier to observe potential market pressure and important price reactions without unnecessarily cluttering the chart.
This tool is designed for traders who prefer a combination of volume analysis, price action, liquidity concepts, and automatic trade-level calculations.
1. BUYER ABSORPTION DETECTION
The indicator identifies potential buyer absorption conditions by examining bullish candle structure, lower-wick rejection, and relative volume activity.
When price moves lower but shows a strong rejection from the lower area of a candle, it may indicate that selling pressure is being absorbed by buying activity.
The indicator evaluates these conditions to highlight potential bullish absorption areas.
What traders can observe:
Bullish rejection candles
Increased relative volume
Potential buying pressure
Possible reactions around liquidity areas
These conditions are estimates based on available candle and volume data, not confirmation of actual institutional orders.
2. SELLER ABSORPTION DETECTION
Seller Absorption Detection focuses on potential selling pressure.
When price moves higher but experiences rejection from the upper part of a candle, it may indicate that buying pressure is being absorbed by selling activity.
The indicator evaluates bearish candle structure, upper-wick rejection, and relative volume conditions to identify potential seller absorption.
Key observations include:
Bearish rejection candles
Increased relative volume
Potential selling pressure
Possible bearish reactions near recent highs
These signals are intended to support technical analysis rather than predict every market reversal.
3. VOLUME SPIKE ANALYSIS
Volume plays an important role in understanding market participation.
Smart Money Absorption Radar compares current volume with its average volume to identify periods of increased activity.
When volume rises above its average, it can indicate increased participation during that candle.
This feature helps traders observe:
Unusual volume activity
Relative volume expansion
Stronger market participation
Potentially important price reactions
High volume alone does not confirm a bullish or bearish direction. It should always be evaluated alongside price structure.
4. LIQUIDITY SWEEP DETECTION
Liquidity Sweep Detection evaluates price movements around recent swing highs and swing lows.
A potential liquidity sweep occurs when price moves beyond a previous high or low and then shows a rejection or reversal-type candle structure.
The indicator uses recent price levels and candle conditions to identify potential sweep events.
Bullish sweep conditions may include:
Price moving below a recent low
Rejection from the lower price area
Bullish candle structure
Supporting volume conditions
Bearish sweep conditions may include:
Price moving above a recent high
Rejection from the upper price area
Bearish candle structure
Supporting volume conditions
Liquidity sweep signals should be considered potential technical events, not proof that a specific institution or market participant has taken liquidity.
5. AUTOMATIC ENTRY, STOP LOSS & TARGETS
One of the key features of this indicator is its automatic trade-level calculation.
When a valid BUY or SELL condition is generated, the indicator can display calculated levels directly on the chart.
The automatic levels include:
Entry
Stop Loss
Take Profit 1
Take Profit 2
Take Profit 3
The stop-loss distance is calculated using ATR-based volatility, while the take-profit levels are calculated using configurable risk-to-reward settings.
Risk-to-Reward Settings:
TP1: 1:1
TP2: 1:2
TP3: 1:3
These are the default target settings and can be adjusted according to individual trading preferences.
The displayed levels are calculation-based reference points. They do not guarantee that price will reach any target.
6. RADAR DASHBOARD
The indicator includes a compact dashboard designed to provide a quick overview of selected market conditions.
The dashboard helps traders monitor:
Volume activity
Buyer pressure estimate
Seller pressure estimate
Market pressure
EMA trend direction
Latest signal information
Instead of checking every individual condition separately, traders can use the dashboard as an additional reference during their analysis.
The dashboard is intended to support decision-making, not replace independent chart analysis.
7. TREND CONFIRMATION
Trend confirmation is included through an optional EMA filter.
This helps traders evaluate potential signals in relation to the selected trend direction.
A bullish setup can be evaluated alongside the broader EMA trend, while bearish conditions can be assessed in the opposite direction.
The EMA filter is optional, allowing traders to configure the indicator according to their preferred trading approach.
8. SIGNAL FILTER & COOLDOWN
The indicator includes signal-filtering conditions designed to reduce repeated signals during closely spaced market movements.
A cooldown setting helps control how frequently new signals can appear.
Additional conditions, such as volume activity, rejection structure, and optional liquidity sweep confirmation, help make signal generation more selective.
However, no filtering system can eliminate false signals or guarantee accurate market direction.
9.HOW TO USE THE INDICATOR
For a more structured analysis, traders may follow this general process:
Step 1 — Check the Market Trend
Start by observing the overall price structure and EMA trend direction.
Step 2 — Observe Volume Activity
Check whether current volume is showing increased activity compared with its average.
Step 3 — Study Absorption Conditions
Look for potential buyer or seller absorption signals supported by candle structure and rejection wicks.
Step 4 — Check Liquidity Areas
Observe whether price has interacted with recent swing highs or swing lows.
Step 5 — Review the Dashboard
Use the dashboard to understand the indicator's current market-pressure estimates and latest signal.
Step 6 — Review Automatic Trade Levels
If a valid signal appears, examine the calculated Entry, Stop Loss, TP1, TP2, and TP3 levels.
Always consider market structure, volatility, spread, and your personal risk management before taking a trade.
10.RECOMMENDED MARKETS
This indicator is intended to be tested on liquid markets where volume and price data are available.
Primary markets:
Gold — XAUUSD
Bitcoin — BTCUSD
Suggested starting timeframe: 1H
11.Important Note
The elements you see on the chart such as the liquidity sweeps and trend lines.were added by me for the purpose of identification they are not part of the indicator itself.
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Join telegram for free gold btcusd and usoil signals
t.me/+viyq6E0EBl82MmY8
t.me/+viyq6E0EBl82MmY8
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。