Order Absorption: When the Market Soaks Up Size Without Moving
Order absorption happens when one side of the market takes massive size without letting price move. It’s one of the strongest real-time signals of hidden strength or weakness—and most traders have no clue what they’re watching.
What Order Absorption Actually Means
It’s simple: one side is willing to take everything thrown at them.
If sellers hammer the bid and price doesn’t drop? That’s buy absorption.
If buyers slam the ask and price refuses to lift? That’s sell absorption.
This connects tightly with Hidden Liquidity, because absorption is often caused by large resting orders you never see.
How Absorption Shows Up in Orderflow
You’ll notice absorption when:
- the tape prints heavy size repeatedly at the same price
- price barely ticks while the tape goes crazy
- aggressive orders hit but can’t push through
- orderbook depth keeps refreshing at one level
| Scenario | What You See | What It Means |
|---|---|---|
| Buy Absorption | Sellers hammer the bid, price holds | Strong buyers defending the level |
| Sell Absorption | Buyers hit the ask, price stalls | Strong sellers absorbing flow |
| Fake Break | Level breaks slightly but snaps back | Absorption overwhelmed briefly, then reclaimed |
Why Absorption Happens
There are only a few real reasons:
- institutions building a position slowly
- algos accumulating or distributing size
- large traders defending a key level
- market makers managing inventory
This behavior fits perfectly with Order Flow Imbalance—absorption often happens *before* imbalance kicks in.
Absorption vs. Rejection
These two get confused constantly:
- Absorption = market takes size without moving.
- Rejection = market bounces fast after touching a level.
Absorption is slow grinding pressure. Rejection is violent bounce.
How to Trade When Absorption Appears
1. Lean With the Side Doing the Absorbing
If buyers are absorbing massive selling, betting on downside is stupid.
2. Avoid Fading Absorption
You’re literally trading against the side taking unlimited size.
3. Watch for the Breakout After Absorption
Once absorption ends, the move is often explosive.
4. Combine With Liquidity Context
Absorption near Stop Run zones often signals reversal setups.
The Bottom Line
If you understand order absorption, you stop trading as if every move is random. You start spotting where big traders are quietly loading up—and you stop fighting the side that’s literally eating every order thrown at them.