Recognizing Absorption In The Order Flow At The High Of Day

www.orderflows....
Understanding absorption in the order flow is an important component of successful trading. Absorption is essentially where buying and selling meet in terms of liquidity, which can tell traders a lot about the current market sentiment.
Absorption in the order flow highlights how swiftly orders are accepted and executed, which can provide traders with a better understanding of market liquidity. This could be used to infer how quickly the price may move or make decisions regarding when to enter or exit a position. Understanding and tracking absorption can provide insight into finding potential trading opportunities, as quick action on any changes in market prices can help generate profits.

[@TERRIBLYBRITISH]

Love you're order flow please would you consider doing a one off order flow lesson on Bitcoin using tradinglite It would be interesting if you see the same characteristics in the overflow

[@sma8794]

Thanks. Just starting incorporating footprint charts and these videos are very helpful.

[@Piedpiper1973]

Will you do some live trading using your software or at least show recording of live trading

[@biglad3368]

That will be informative.

[@pm7775]

@@biglad3368 I agree.

[@ClavisTrading]

Happy Monday Mike. Good explanation

[@orderflows]

thank you.

[@maximustinov9076]

Hi, Mike! Can you make a video about prominent POCs, please?

[@orderflows]

Sure, I will put it on the list

[@Harshavardhan-gd4eu]

Hi mike, fantastic knowledge 🙏

[@a007tppn2]

Great information but I have important question for you ! how much Stops big traders put ? 10 or 20 tiks ? or 5 or 10 pips ?? for eurusd

[@cryptoyorsh5454]

around the 9 minute mark you started talking about big SELLERS supporting the move up (red numbers) ?? im totally confused there, if i wanna see a big move up im expecting for big BUYERS to come into the market (blue numbers) right?
or AM I TOTALLY confused?? :(

[@biglad3368]

Maybe closing positions.
If you buy you will be a seller.

[@Piedpiper1973]

Bigger seller, and or forced buyers will cause a money injection into the market. Always Remember short sellers are future buyer it will help spot the fake outs, particularly at high prices. I call it Big money bait and switch. Happy trading, and order flow Rocks!!!

[@orderflows]

The big sellers (aggressive sellers) are being absorbed by big passive buyers (fresh liquidity coming into the market). If there were no big passive buyers (i.e. new liquidity coming into the market to support the market) the market would go lower. While you do want to see aggressive buying on a move up (blue numbers) when you see the red numbers and the market is still moving up, what do you think is causing it and why isn't the market moving lower?

[@Piedpiper1973]

@@orderflows red #’s, but market still moving up means we still got money on the table(willing buyers)market is matching (up)buyers in the face of aggressive sellers (red #’s)in fewer words selling is being absorbed by passive buyers(resting liquidity).

[@jancap8956]

@@orderflows Hi. I must agree despite not having my eyes trained enough to actualy recognize it straight up. However what I do recognize easily on the DOM is a lot of pulling of liquidity from the ask during the move up. How does that, please, pair up with the notion of buyers meeting the agressive sellers? I will appreciate your comments.

[@simozemm9064]

amazing, many thanks 🙏

[@Will_Ramb0]

So this is how a short squeeze would look on a footprint chart right?

[@Tonychokolony]

I love your Videos!

[@hedgefund996]

Good Content

[@orderflows]

Thanks