Mes absorbtion,, how to recognize it

[StankE]

I use the volumetrics and delta percentages when I trade MES.
when absorbtion is taking place, is the min sell delta and max buy delta close to being the same or is one larger than the other and price doesn't move much?

[NinjaTrader_BrandonH]

Hello StankE,

Thanks for your post.

You could do a quick Google search to find more information about absorption when it comes to trading instruments. After doing a quick Google search for "What is absorption when trading stocks" I found the following information from the publicly available webpage linked below.

Absorption is a scenario which shows unproportionally high trading volumes near the bar’s high or low in absence or insignificant movement of the price behind that level.

An ideal variant is the appearance of this pattern of higher, than usually, volumes at the support and resistance levels.

Absorption of sells occurs when the aggressive market sells bump into the passive limit buys, which absorb the supply of the selling side.

Absorption of buys occurs when the aggressive market buys bump into the passive limit sells, which absorb the demand of the buying side.

https://atas.net/volume-analysis/str...otprint-chart/

[StankE]

Yeah,,, I found out a lot of info on chat GPT. I know what to look for and how to avoid getting trapped into absorbtion. It is a easy thing to get stuck in if not paying attention of the Delta and price movment. Thanks