Absorption Signals: How the Market Shows You It’s Eating Aggression
Absorption is one of the clearest signs that the market is about to turn. It happens when aggressive traders smash into a level, but price doesn’t move. Someone on the other side is eating everything they throw at it — quietly loading up.
If you want to see reversals before they show up in structure, you learn to read absorption.
What Absorption Actually Is
Absorption occurs when passive liquidity absorbs aggressive orders without allowing price to break. In simple terms:
- Aggressive buyers keep lifting offers → price should go up
- But price doesn’t go up → sellers absorb them
The same applies in reverse for down moves.
How Absorption Shows Up
1. High Volume, Zero Movement
Large prints hit the tape, but the market barely ticks.
2. Repeated Attempts to Break a Level Fail
The aggressive side hits the same price again and again — no progress.
3. Opposite-Side Pressure Suddenly Appears
Once absorption finishes, the other side attacks fast because the aggressive side is stuck.
Absorption vs Genuine Breakout
| Absorption | Breakout |
|---|---|
| Heavy prints at a single price | Prints spread upward/downward |
| Little or no movement | Directional expansion |
| Opposite side waiting to strike | Dominant side continues cleanly |
Where Absorption Commonly Forms
- At key prior swing highs/lows
- Inside volume clusters
- At the edges of liquidity rebuilds
- Before momentum reversals
- During fake breakouts
Why Absorption Is a Reversal Signal
The aggressive side is burning through inventory. When they run out, the absorbing side takes over. This is why reversals often look instant — the absorbing side already has size and positioning ready.
How to Trade Absorption Signals
- Don’t chase the aggressive side — they’re getting trapped.
- Enter when the first real counter-aggressive push appears.
- Use tight stops — absorption reversals move fast.
- Use the absorbing level as your invalidation point.
Final Thoughts
Absorption is the market telegraphing that aggression is failing. If you watch the tape and depth instead of just candles, these signals become obvious. Price doesn’t need to move for the story to change — the battle happens before the breakout or reversal prints.