Absorption #

Definition #

The absorption signal visualizes the point where absorption occurs in your instrument. The signal will print immediately and remain historically on the chart at the time and price level where the absorption occurred. You can also adjust the settings to receive alerts for the signal.

Strategy #

When the price is absorbed, look for a price reversal.

License #


Absorption Signal  #

The market volume is measured for a defined period of time for an absorption signal. Once the “Trigger Volume” value is reached or exceeded within the time parameters, the signal is the output. It can occur with one or more large limit orders or an iceberg.

Absorption happens when a lot of volume gets „absorbed“ by limited orders (or icebergs) without moving the price.

In practice, the price might be allowed to move 1 or 2 ticks, which we still call absorption.

Scheme #

In this example, a total volume of 850 lots was absorbed on a single price level, while 500 lots are still in the limit order book.

There are two absorption signals together. One with 1.526 lots and the other with 780 lots. All market volume was absorbed. After that, the price goes up. 

Settings #

Settings window for absorption signal 

Enable / Disable
Enable or disable the Absorption signal on the chart by clicking the “Enable” checkbox.

Design and Layout
Click on the “Edit” Button to change the design, symbol, color, transparency, layout, position on the chart, and size of the signals on the chart. If you choose the design style “professional,” you will get additional information about the absorption signal.

The “professional” Symbol takes up more space but shows additional information about the specific absorption signal.

Trigger Volume
The threshold of market volume must be transacted and completely absorbed by resting limit orders.
Value range: 1–100000000
Increment: 1 

Maximum Duration [s]
Threshold of time given for market volume to be transacted and absorbed. Absorption needs time to complete all traded orders on both the market and limit sides.
Value range: 0.01–10000
Increment: 0.01

Alert Sound
Acoustic signal that sounds when the parameters of an absorption signal are met.

Send Telegram Notifications
Enabled / Disabled allows you to notify the messenger service “Telegram”.

Enable Bookmap Notifications
Enabled / Disabled activates the Sound Alerts in Bookmap.