Prop Firm Bridge logoProp Firm Bridge
Community

Why I Watch What Happens After Absorption

Sachin Yadav

Absorption is interesting, but it isn't an automatic reversal signal.

Suppose aggressive sellers keep hitting the bid, yet price stops moving lower. Someone may be absorbing that selling.

Now comes the important part: what happens next?

If price starts moving higher and buyers become more aggressive, the absorption may have mattered. If selling pressure returns and price breaks lower, the level failed to hold.

I treat absorption as a clue, not a complete trade setup.

0
0 comments
Sign in to join the conversation

0 comments

No comments yet. Start the conversation.