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Absorption Detector 2.0
Detects institutional absorption patterns where large orders defend key price levels. Approximates order flow concepts using standard OHLCV data — no Level 2 or DOM data required.
What is Absorption?
Absorption occurs when one side of the market (buyers or sellers) aggressively attacks a price level, but price refuses to move. This happens because a large institutional order is sitting at that level, absorbing all incoming market orders. It's one of the strongest signals of institutional defense.
Two Types of Absorption:
BID Absorption (Bullish) — Sellers are aggressively hitting bids, volume is high, but price won't drop. Buyers are absorbing all selling pressure, defending support. Look for long entries after confirmation.
ASK Absorption (Bearish) — Buyers are aggressively hitting asks, volume is high, but price won't rise. Sellers are absorbing all buying pressure, defending resistance. Look for short entries after confirmation.
Signal Strength:
BID / ASK (small) — Basic absorption detected. Score 1-3.
BID🛡️ / ASK🛡️ (medium) — Strong absorption. Score 4. Multiple conditions confirmed.
BID🛡️🛡️ / ASK🛡️🛡️ (large) — Extreme absorption. Score 5+. Highest conviction signal.
x2+ (triangle) — Multiple tests at the same price level. The more times a level is tested and holds, the stronger the defense.
Scoring System (0-6):
The indicator scores each bar across five dimensions: volume intensity relative to average, body-to-range ratio (tiny body = tug of war), price stalling with high volume over multiple bars, close position combined with delta direction, and reversal candle confirmation.
Info Panel:
Real-time display of volume ratio, body/range percentage, candle close position, approximate delta direction, stalling detection, bid/ask absorption scores, and current signal status.
How to Use:
When you see a BID signal at a support level, it suggests buyers are defending. Wait for the next candle to confirm the bounce before entering long. When you see an ASK signal at resistance, sellers are defending. Wait for confirmation before entering short. Signals with the shield emoji and x2+ multiple tests are highest conviction.
Features:
- Works on any instrument, any timeframe
- Approximates institutional absorption without Level 2 data
- Three signal strength levels with scoring system
- Multiple test detection at the same price level
- Real-time info panel with absorption metrics
- Bar coloring and background highlights
- Built-in alert conditions for all signal types
Note:
This indicator approximates absorption using volume and price action. For true absorption confirmation, cross-reference with a DOM or Bookmap if available. Best results on instruments with reliable volume data (futures, stocks). CFD users should lower the Volume Spike Multiplier in settings.
What is Absorption?
Absorption occurs when one side of the market (buyers or sellers) aggressively attacks a price level, but price refuses to move. This happens because a large institutional order is sitting at that level, absorbing all incoming market orders. It's one of the strongest signals of institutional defense.
Two Types of Absorption:
BID Absorption (Bullish) — Sellers are aggressively hitting bids, volume is high, but price won't drop. Buyers are absorbing all selling pressure, defending support. Look for long entries after confirmation.
ASK Absorption (Bearish) — Buyers are aggressively hitting asks, volume is high, but price won't rise. Sellers are absorbing all buying pressure, defending resistance. Look for short entries after confirmation.
Signal Strength:
BID / ASK (small) — Basic absorption detected. Score 1-3.
BID🛡️ / ASK🛡️ (medium) — Strong absorption. Score 4. Multiple conditions confirmed.
BID🛡️🛡️ / ASK🛡️🛡️ (large) — Extreme absorption. Score 5+. Highest conviction signal.
x2+ (triangle) — Multiple tests at the same price level. The more times a level is tested and holds, the stronger the defense.
Scoring System (0-6):
The indicator scores each bar across five dimensions: volume intensity relative to average, body-to-range ratio (tiny body = tug of war), price stalling with high volume over multiple bars, close position combined with delta direction, and reversal candle confirmation.
Info Panel:
Real-time display of volume ratio, body/range percentage, candle close position, approximate delta direction, stalling detection, bid/ask absorption scores, and current signal status.
How to Use:
When you see a BID signal at a support level, it suggests buyers are defending. Wait for the next candle to confirm the bounce before entering long. When you see an ASK signal at resistance, sellers are defending. Wait for confirmation before entering short. Signals with the shield emoji and x2+ multiple tests are highest conviction.
Features:
- Works on any instrument, any timeframe
- Approximates institutional absorption without Level 2 data
- Three signal strength levels with scoring system
- Multiple test detection at the same price level
- Real-time info panel with absorption metrics
- Bar coloring and background highlights
- Built-in alert conditions for all signal types
Note:
This indicator approximates absorption using volume and price action. For true absorption confirmation, cross-reference with a DOM or Bookmap if available. Best results on instruments with reliable volume data (futures, stocks). CFD users should lower the Volume Spike Multiplier in settings.
Mã nguồn mở
Theo đúng tinh thần TradingView, tác giả của tập lệnh này đã công bố nó dưới dạng mã nguồn mở, để các nhà giao dịch có thể xem xét và xác minh chức năng. Chúc mừng tác giả! Mặc dù bạn có thể sử dụng miễn phí, hãy nhớ rằng việc công bố lại mã phải tuân theo Nội quy.
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.
Mã nguồn mở
Theo đúng tinh thần TradingView, tác giả của tập lệnh này đã công bố nó dưới dạng mã nguồn mở, để các nhà giao dịch có thể xem xét và xác minh chức năng. Chúc mừng tác giả! Mặc dù bạn có thể sử dụng miễn phí, hãy nhớ rằng việc công bố lại mã phải tuân theo Nội quy.
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.