Glossary

Absorption

Price failing to advance despite aggressive buying/selling volume, as large limit orders soak up the flow. Usually seen before a reversal.

On a footprint, heavy sell volume at a low plus price not falling = buyer absorption. Once the sellers are exhausted, price snaps back up quickly.

Absorption is a trace of the "big player," but it needs confirmation: wait for a structure break or a delta reversal after the absorption.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.