In financial markets, particularly in order flow trading , an absorption indicator is a technical tool that highlights price levels where large volumes of aggressive market orders are being "absorbed" by passive limit orders.
: Traders use it to confirm entries, ensuring they aren't trading blindly into a strong counter-force. Chemistry: Adsorption Indicators Absorption Indicator | Bookmap Knowledge Base absorption indicator
: Tools like Bookmap's Absorption Indicator visualize this by marking areas with heavy volume traded over short time periods, often revealing hidden "iceberg" orders. Trading Significance : In financial markets, particularly in order flow trading
: Absorption at a key support or resistance level often signals a potential reversal as the aggressive side "exhausts" their energy against a wall of limit orders. In financial markets