: Tools like Bookmap's Absorption Indicator visualize this by marking areas with heavy volume traded over short time periods, often revealing hidden "iceberg" orders. Trading Significance :
: Absorption at a key support or resistance level often signals a potential reversal as the aggressive side "exhausts" their energy against a wall of limit orders. absorption indicator
: It monitors the interaction between market aggressors (buyers/sellers using market orders) and resting liquidity (limit orders). Absorption occurs when price movement stalls despite high trading volume because a large player is "absorbing" all the incoming orders at a specific level. : Tools like Bookmap's Absorption Indicator visualize this