Visually speaking, absorption on a footprint chart often shows up when you see high volume on the bid (red) but price isn't moving lower — or on the ask (blue) but price isn't moving higher.
So if you're seeing a lot of red (aggressive sellers) hitting the bid, but the market holds steady or even ticks up, that’s a clue: someone is passively buying all of it — absorbing the selling.
Same the other way around: if aggressive buyers (lots of blue) are lifting the ask but price stalls or pulls back, someone is absorbing that buying pressure with passive sell orders.
Fantastic stuff as always! Thank you Smash!
🤝
Really appreciate it.
Excellent work Smash. How can u spot an absorption on footprint visually speaking? Thanx.
Visually speaking, absorption on a footprint chart often shows up when you see high volume on the bid (red) but price isn't moving lower — or on the ask (blue) but price isn't moving higher.
So if you're seeing a lot of red (aggressive sellers) hitting the bid, but the market holds steady or even ticks up, that’s a clue: someone is passively buying all of it — absorbing the selling.
Same the other way around: if aggressive buyers (lots of blue) are lifting the ask but price stalls or pulls back, someone is absorbing that buying pressure with passive sell orders.
thank you smashie!
Thank you Smash!!!!!!
🤝
Which heatmap settings do you use in Chartbook when liquidity is down?