Absorption

ABSORPTION:

There are two ways to spot an absorption:

- Indicator Absorption on Footprint
- Indicator Market Delta bubbles  

ABSORPTION 1: 
The footprint can reveal price absorption areas left of the candlebar with bright rectangles. (usually at the top or bottom with a red or green outlined rectangle). Absorption showed an aggressive side Level 1 sellers or buyers were absorbed by Level 2 passive (limit) orders in the opposite direction. Absorption or repeated absorption is a precursor for trend reversals and an indicator of support and resistance zones.

 Indicator Absorption is a part of a Footprint.

Turn on the Absorption indicator on the Foorprint properties:

- Open Footprint indicator
- >Properties
- >Section 05 Absorption and
-> select Show Absorption

 ABSORPTION 2: 
Absorption market participants are contradicting the hidden limit orders on the heatmap and are represented on Market Delta bubbles. Red bubbles - aggressive sales by market at the bottom of the structure are expected to move the price down, but instead the price is going up. It is because of the resistance in liquidity on level 2 - passive orders are able to absorb market sales. Passive buyers are stronger than aggressive sales by market. 

The same with Green bubbles - aggressive market buy orders do not move the price higher, because passive liquidity orders on level 2 absorb buyers. Passive sellers are stronger than aggressive market participants.