One of the most powerful order flow concepts is absorption.
When aggressive sellers continuously hit the bid but price refuses to move lower, it may indicate that a large buyer is absorbing selling pressure.
Things to watch:
High selling volume
Price unable to make lower lows
Bid absorption
Bullish reaction confirmation
Do you use absorption to identify potential reversals? Share your thoughts!
Spotting order flow absorption is a great skill for catching reversals, especially when aggressive selling fails to push prices lower despite high volume. To trade it effectively, always wait for confirmation—like a strong bullish delta or a break of market structure—rather than trying to catch falling knives blindly.
When trading prop firm accounts, watching order flow helps you manage your risk and stay safely within your daily loss limits by avoiding early entries.
How do you usually filter out false absorption signals in your charts? Share your setups below!
