What Is Offer Absorption?

Offer absorption: aggressive buyers meet persistent selling liquidity

Imagine NQ rallies toward a previous session high. Buyers repeatedly lift the offer, but price cannot establish itself above the level.

This may suggest that resting sellers are absorbing the aggressive buying.

The key word is may.

If buyers eventually consume the available liquidity, price could break higher instead.

I want to examine the relationship between executed volume and price progress.

Are buyers spending significant effort without moving price? Does the market reject the area? Does price return below the level?

Those observations help me evaluate whether a potential reversal is developing rather than treating every large buying imbalance as a reason to sell.