Absorption

What it means

Absorption suggests one side is willing to take a large amount of trade at a price area without giving up much ground.

What to watch

Absorption can precede reversal or continuation. It becomes useful when paired with location, structure, and the reaction after the heavy trade.

Where traders usually run into this

Absorption is most useful once it is tied to a concrete page, chart decision, or workflow question.

• Order Flow keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Delta keeps this term attached to a real glossary instead of leaving it as standalone jargon.
• Liquidity keeps this term attached to a real glossary instead of leaving it as standalone jargon.

Best next page if this term is blocking you

If you understand the definition but still do not know what to do with it, start with Order Flow. That page is the fastest way to see how absorption shows up in a real glossary workflow.