Heavy aggressive selling (or buying) hits a level but price stops moving because passive limit orders soak it up. It often precedes a reversal from that level.
How to identify it
- Large volume prints at a level with little price progress
- Footprint shows big market orders against resting size
- Price holds and starts to turn
Entry
Enter against the absorbed side once price moves off the level.
Stop loss
Just beyond the absorption level.
Target
Nearest opposing level such as VWAP or POC.
Invalidation
The level gives way and price accelerates through it.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your absorption trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.