Being able to visualize and act upon Absorption is a powerful tool for the order flow trader. Delta Tails analyses differences in buying and selling at each price to highlight when the supply or demand capacity of passive traders is absorbing the activity of aggressive traders. The indicator identifies:
- Demand: when the buying capacity of passive traders is able to absorb the selling of aggressive traders at the bottom of a bar followed by consistent aggressive buying through the bar
- Supply: when the selling capacity of passive traders is able to absorb the buying of aggressive traders at the top of a bar followed by consistent aggressive selling through the bar
Indicator Settings & Outputs Reference
You can apply the emoji Advanced Lookback Filter to limit identification of Delta Tails Supply/Demand Events to only those that occur at relative highs and lows.
Specify the minimum number of price levels (minimum 3) that must be present within a bar for evaluation of a Delta Tails Supply/Demand Event.
Select whether Delta Tails considers the location of the bar’s Point of Control in its evaluation. This is a similar concept to the Prominent POC used by the Order Flow Suite POC Pro indicator.
The number of ticks away from the bar high/low that the Supply/Demand indicator Output Signals are drawn.
This indicator provides:
• Output Signals