OrderVane

Absorption

Aggressive orders met resting size and the resting side held. The whole observation is that volume happened and price did not follow.

What absorption means

Every trade has an aggressor and a passive side. The aggressor lifts an offer or hits a bid; the passive side is resting there and gets filled.

Normally, aggression at one price uses up the resting size and price moves to the next level. Absorption is when that does not happen — the aggressive orders keep coming, they keep getting filled, and the price stays where it is. Someone on the passive side kept replenishing the quote faster than it was being taken.

That is the entire claim: size traded, price did not follow. It is a description of what already happened. It says nothing about what comes next.

What it looks like on a footprint

A footprint bar splits each price into the volume that traded at the bid and at the ask, so absorption shows up as a shape rather than a number:

What you seeWhat it describes
A row with heavy volume on one sideAggression concentrated at one price
The bar's range staying narrow around itThat aggression did not produce movement
The next rows staying thinPrice did not walk away afterwards

The contrast is the informative part. The same volume with the bar's range extending is the opposite picture — the book gave way. See how to read a footprint bar for the cell language this rests on.

What OrderVane marks

Absorption is one of the three tape marks, drawn as a horizontal bar at the price where it happened. The other two describe aggression that did travel — see big trade markers.

A mark is drawn when all of these hold at once:

SettingWhat it controls
Absorption min volumeHow much has to trade before it counts as size
Absorption max range (ticks)How tight the price band has to stay — this is the "did not move" part
Absorption min printsHow many separate prints, so a single block does not qualify
Absorption DOM confirm (live)Optional: require the resting side to be visibly large in the book

Volume alone is not absorption, and a narrow range alone is not absorption. The mark exists at the intersection: enough size, in a tight enough band, over enough separate prints.

Absorption DOM confirm is live-only. It reads the current book, and there is no historical book to read. On replayed bars that condition is simply not evaluated rather than guessed at.

Absorption at a level

The tape marks above describe absorption wherever it occurs. A separate mark describes it at a place you were already watching: when price touches an extended session level — the previous session's VAH, VAL or POC — OrderVane can record whether that touch was absorbed.

The two are the same mechanism observed at different scopes. The tape mark answers did this pressure achieve anything? The level mark answers did this pressure achieve anything here?

Absorption is not exhaustion

The two get used interchangeably and they are different observations.

They can look similar on a chart because both end with price not moving. OrderVane marks the first, because it is the one the tape can actually show — replenished resting size leaves a trace in the volume-versus-range relationship. Whether the aggressor gave up is not something a print tells you.

Exhaustion has its own page — what it means, why the tape cannot establish it, and what we draw instead.

Honest limits

OrderVane draws this on your Quantower charts.

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