What Is a Liquidity Absorption Zone?

A Liquidity Absorption Zone is an area where repeated aggressive orders appear to meet passive liquidity without producing much price movement.

Imagine sellers repeatedly hitting the bid, but price refuses to move lower.

This may indicate passive buying interest absorbing selling pressure.

Traders often monitor such areas for a possible change in market behaviour.

But absorption can also lead to continuation if the passive liquidity eventually gets consumed.

Absorption is a process. The final price reaction matters most.

Would you enter immediately after spotting absorption, or wait for confirmation?