About the Absorption Indicator
Absorption is an on-chart indicator that shows areas with large volume traded over short time periods. Absorption is the result of aggressor buyers’ or sellers’ activity at key levels. In other words, it shows where large resting sell limit orders (sometimes iceberg orders) absorb large buying aggressors and vice versa. Large buy limit orders absorb large selling aggressors.
In many cases, the absorption indicates areas where price bounces and move in another direction.
An example of large passive limit sell orders filled on the offer during a spike higher. The Abosrption Indicator captures these passive or resting sell order transactions represented by the pink squares.
Absorption Indicator Installation Guidelines
To install the Absorption indicator, follow these steps:
- Download the Absorption indicator
- Launch Bookmap version 7.1.0 b57 or newer and subscribe to at least one instrument
- Click on the API plugins icon to open the API plugins configuration panel (or Settings → API plugins configuration)
- In API plugins configuration, click on the “Add” button and then select the
AbsorbtionIndicator.jarfrom the “Select addon file...” dialog window. Locate the downloaded file and click on the “Open” and then “Load”.
- The Absorption indicator will appear in the list of available plugins. Click on it to see the indicator’s settings, and then click on the checkbox near the indicator’s name to activate/deactivate the indicator for the instrument opened.
Absorption Indicator Configuration
Indicator’s settings are configurable for each instrument separately.
The first two editable fields allow you to choose a time period (in seconds) and size settings. The indicator works as follows: if within
If the “Same price” checkbox is ticked, the total size is calculated separately for each price level. So the volume of several trades will be aggregated only if they are made at the same price. If the checkbox is not ticked, the total size is calculated for all price levels together.
If the “Sound alert” checkbox is ticked, the user will get a sound notification every time a new group of indicator marks is added to the chart.
The visual settings of the indicator are the same for all instruments.
- “Dots size” allows selecting the indicator's dots size in pixels.
- “Dots shape” allows choosing the shape of the indicator’s dots (round or rectangle).
Asks and bids color settings indicate the color with which the ask and bid absorption are marked on the chart.
If you save your workspace when exiting Bookmap (or if you use the “File” → “Save workspace” option), the indicator's settings will be saved to the workspace.
Users can load it later using the “File” → “Open workspace” dialog or using the “Load previously opened workspace” option on Bookmap’s startup.
An Example of Bookmap’s chart with Absorption indicator enabled:
Insights provided by the Absorption Indicator, together with the market structure, heatmap, and Stop&Iceberg Tracker. To access more Absorption Indicator Examples, please visit this page: https://bookmap.com/absorption/.
The Absorption indicator supports all instruments/platforms, including futures, stocks, and crypto.
The backfill data that is provided by dxFeed is aggregated. Therefore the granularity is insufficient to show Absorption correctly, so detections on backfill data may differ from real-time data.
The volume traded during a short time frame is different between instruments and on the same instrument during the day. So if you adjust the threshold manually, you may need to update it.
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I do not see any dots. How can I check that the indicator works?
Absorptions are shown only when the traded volume is greater than in your settings. If you see trades and still do not see Absorption icons, go to Absorption indicator configuration, and set a smaller minimum size. If it doesn’t work, disable other addons, then go to visual components and hide all chart elements. If you still do not see absorption icons, please contact us at firstname.lastname@example.org or via telegram chat.
What is the difference between the absorption indicator and the current volume bubbles on the chart?
- In Total volume mode, the bubble shows both buyers and sellers aggressors. It is not necessarily one-sided (aggressor buyers or aggressor sellers); it is not necessarily on the same price or not necessarily in a short time frame.
- Delta mode shows the difference between buyer and seller aggressors. The volume is not necessarily traded over a short time or at the same price.
Is the Absorption indicator part of Bookmap subscription plans, or is it available for purchase separately?
Absorption Indicator is part of the Global+ package and is also offered as part of the Addons package.