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.