Absorption
Reversal

Large limit orders absorb market orders at key levels. When you see massive volume traded at a level with no price movement, a reversal may be building.

Order Flow5m, 15m2.5:1 R:R
Deploy This Strategy See Rules

Rules & Configuration

The full rule set, required indicators, suggested configuration, execution flow, and performance parameters for the Absorption Reversal setup.

Large limit orders absorb market orders at key levels. When you see massive volume traded at a level with no price movement, a reversal may be building.

Indicators Used
Footprint ChartS/R LevelsVolume Delta
Rules
📈 Entry Rules
  • Price reaches key support level
  • Footprint shows large bid absorption (high volume, no price drop)
  • Delta turns positive while price holds
  • Enter long when price begins to move away from level
  • Stop below the absorption level

Common questions

What is the Absorption Reversal strategy?

Large limit orders absorb market orders at key levels. When you see massive volume traded at a level with no price movement, a reversal may be building.

What indicators does the Absorption Reversal strategy use?

The Absorption Reversal strategy uses the following indicators: Footprint Chart, S/R Levels, Volume Delta. These can be configured directly in AlgoBars AlgoBuilder.

What timeframe works best for Absorption Reversal?

The Absorption Reversal strategy is best traded on the 5m–15m timeframe. This can be adjusted based on your trading style and market conditions.

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