Absorption Sequence

From: $9.99 / month

Visualise the price levels where large traders are selling to, or buying from other traders and reduce your chances of being on the wrong side of the market.

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Volume is what causes price to move and it follows that it is the action of large traders that determines price levels during the trading day. Large traders cannot simply enter the market and buy many hundreds or thousands of contracts in a single trade. They will 'work' an order in order to build the intended position. The Absorption Sequence indicator helps identify this large trader activity by highlighting price levels in the current and prior price bars where buying or selling is being consistently absorbed, i.e. a price is being supported or resisted. By highlighting these market-generated support and resistance levels that represent the trading interests of large traders, we can make trading decisions based upon the bias of the stronger hands in the market and avoid falling into the traps presented by indicators that focus solely on price.

Absorption Sequence may be licensed for Sierra Chart on a Lifetime, 1-month or 3-month basis, or as part of the complete Emoji Trading Order Flow Suite. Licences include all indicator updates and enhancements during the license period.

Input Name Description
Lookback Period This input determines how may bars back from the current bar will be considered when evaluating an Absorption Sequence. 
Volume Threshold Basis Determines whether the Volume Threshold (see below) is evaluated using the volume or Delta at the price level where Absorption is occurring.
Volume Threshold Specifies the quantity of Volume or value of Delta (see above) that must be present at the price level where absorption is occurring in order for the Absorption at Extreme condition to be indicated.
EmojiZone Mode Please refer to this link for EmojiZone documentation.
Select whether the EmojiZone is set to: Disabled, Fixed Projection, Extend Until Future Intersection or Dynamic Support/Resistance Display.
EmojiZone Fixed Projection Distance Specifies the number of bars from the current bar that a Fixed Projection EmojiZone will be drawn.
EmojiZone Extension Line Label Specifies the line label (can be left blank) for an Extend Until Future Intersection EmojiZone line.
EmojiZone Dynamic Break Threshold When using a Dynamic Support/Resistance Display EmojiZone, this input sets the number of ticks by which the zone can be breached without it being regarded as having broken.
EmojiZone Dynamic Evaluation Levels If set to 0, every current EmojiZone is evaluated at each study calculation. To reduce processing time, a non-zero value will limit calculation to the nearest n EmojiZones to the current price where n is the value entered in this setting.
ID Subgraph Description
SG1 Bid Absorption Sequence Price The price level at which selling into the bid is being consistently absorbed, i.e. a large buyer has demand at this price creating potential support.
SG2 Bid Absorption Sequence Drawing Top Use in conjunction with SG3 to highlight the bid absorption price. Please refer to the Sierra Chart Notes about Top and Bottom Draw Style Pairs.
SG3 Bid Absorption Sequence Drawing Bottom Use in conjunction with SG2 to highlight the bid absorption price. Please refer to the Sierra Chart Notes about Top and Bottom Draw Style Pairs.
SG4 Ask Absorption SequencePrice The price level at which buying at the ask is being absorbed, i.e. a large seller is supplying at this price creating potential resistance.
SG5 Ask Absorption Sequence Drawing Top Use in conjunction with SG6 to highlight the ask absorption price. Please refer to the Sierra Chart Notes about Top and Bottom Draw Style Pairs.
SG6 Ask Absorption Sequence Drawing Bottom Use in conjunction with SG5 to highlight the bid absorption price. Please refer to the Sierra Chart Notes about Top and Bottom Draw Style Pairs.
SG7 EmojiZone Properties Use the Color, Width/Size and Transparency Level for Fill Styles inputs to customise the appearance of this indicator’s EmojiZones. Please refer to this link for the EmojiZone documentation.