PROTECTED SOURCE SCRIPT

BT Delta Absorption

31
BT Absorption detects aggressive counterflow volume—moments where one side
of the market (buyers or sellers) attacks aggressively, yet price fails to move
proportionally.

This is the classic definition of absorption:

"Large market orders are being absorbed by strong passive limit orders."

Absorption is one of the most reliable early signals for:
  • Reversals
  • Trap conditions
  • Failed breakouts
  • Liquidity grabs
  • Fake displacement moves


---

■ What BT Absorption Measures

1. Delta Imbalance
Identifies when buying or selling pressure becomes unusually one-sided.

2. Volatility Mismatch
Shows when large delta does NOT translate into meaningful price movement.

3. Absorption Strength Score
A normalized reading (often 0–100) showing the intensity of counterflow activity.

4. Wick & Structure Absorption
Wick-driven absorption helps identify:
  • Failed sweeps
  • Stop hunts
  • Rejection zones
  • Trapped traders


---

■ Why Absorption Matters

Absorption almost always precedes:
  • Reversals
  • Failed breakout moves
  • SMC/ICT-style displacement
  • Order block formation
  • Trend continuation after a trap


When aggressive traders cannot move price toward their desired direction,
the move typically reverses quickly—and with force.

---

■ Visual Elements

• Bull Absorption Marker
Often appears near lows—signals seller aggression failing to push price down.

• Bear Absorption Marker
Often appears near highs—signals buyer aggression failing to break higher.

• Absorption Score Heatmap (optional)
Shows intensity of absorption per candle.

• Threshold Levels
Identify when absorption becomes statistically significant.

---

■ How to Use BT Absorption in Trading

1. Reversal Detection
Look for absorption after:
  • Equal highs/lows
  • Sweeps
  • Stop runs
  • Breakout failures


This is often the earliest possible signal that a reversal is coming.

2. Filter Breakouts
A breakout without absorption is usually weak.
A breakout with absorption against it is likely a fakeout.

3. Confirm SMC/ICT Concepts
The indicator pairs perfectly with:
  • Fair Value Gaps
  • Order Blocks
  • Liquidity sweeps
  • Displacement legs


If your setup triggers and absorption confirms → high confidence.

4. Identify Trap Conditions
Absorption often marks:
  • Trapped breakout chasers
  • Trapped trend shorts
  • Imbalanced orderflow


These create ideal high-R trades.

5. Alert-Driven Market Monitoring
Use alerts for:
  • Bull Absorption
  • Bear Absorption
  • High-strength absorption
  • Absorption clusters


This allows traders to step away from charts while still catching
high-probability reversals.

---

■ High-Probability Absorption Setups

A) Sweep + Absorption
Swept level → absorption → enter opposite direction.

B) Failed Breakout Absorption
Breaks structure → delta fails → absorption prints → strong reversal.

C) Trend Continuation Absorption
Absorption against the correction often precedes continuation.

D) Absorption Clusters
Multiple absorption signals indicate a structural market shift.

---

■ Final Summary

BT Absorption provides:
  • Early reversal signals
  • Counterflow pressure detection
  • Confirmation for existing setups
  • Identification of liquidity traps
  • Alert-based monitoring across multiple markets


BT Absorption is the perfect complement to BT Spike:
• BT Spike = detects volatility ignition
• BT Absorption = detects failed aggression + reversals

Combined, they form a complete liquidity and orderflow toolkit.

Clause de non-responsabilité

Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.