What Is Absorption Followed by Initiative Movement?
One interesting order flow sequence is absorption followed by a strong directional move.
For example:
1. Aggressive sellers repeatedly hit the bid.
2. Price struggles to move lower.
3. Selling pressure becomes less effective.
4. Buyers begin lifting offers.
5. Price starts moving higher.
This sequence may indicate that selling pressure was absorbed before buyers initiated an upward move.
The key is observing the transition, not assuming every absorption event will reverse.
Absorption shows resistance to aggression; initiative movement shows a change in behaviour.
Have you studied this sequence on footprint charts?