What Is Bid Absorption?

Bid absorption: when aggressive selling fails to push price lower

Suppose NQ falls toward an important support zone. Sellers continue hitting the bid, but price struggles to move below the area.

One possible explanation is that resting buyers are absorbing the aggressive selling.

I would not immediately buy just because selling volume is high.

Instead, I'd look for additional evidence:

• Does price stop making lower lows?

• Does the market reclaim the nearby price level?

• Does buying activity appear after the selling slows?

• Where would the long idea become invalid?

If price eventually breaks lower, the apparent absorption may not have held.

Absorption becomes more useful when the market's subsequent reaction confirms the idea.