Absorptions

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.

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. The absorption signal visualizes the point where absorption occurs in your instrument.

Examples

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: One with 304 lots and the other with 356 lots. All market volume was absorbed.

Settings

Absorption settings in TTW-MarketExplorer

Enable Checkbox : Enable the checkbox to enable Absorptions on the trading chart.

Trigger Volume : The threshold of market volume must be transacted and completely absorbed by resting limit orders.

Maximum Duration : 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.

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.

Alert Sound (Live Trading only, not available in Replay) : The audio signal sounds when a Absorption occurs and meets the defined conditions.

Send Telegram Notifications (Live Trading only, not available in Replay) : Enabled / Disabled allows you to notify the messenger service "Telegram".