BookMap Signal

Xtrend Absorption

Absorption means aggressive traders are hitting one side of the market, but a larger passive player is still sitting there and taking that pressure without moving away easily. In simple customer language: someone is absorbing the attack.

Bid absorption Sellers hit the bid, but the bid still holds with meaningful size.
Ask absorption Buyers hit the ask, but the ask still holds with meaningful size.
Trading meaning The move may be slowing down, getting defended, or preparing for a reaction.

What the customer sees on the chart

The indicator marks absorption with a horizontal line at the defended price level for a short time.

Green line = bid absorption Sellers hit support, but the bid stayed strong.
Red line = ask absorption Buyers hit resistance, but the ask stayed strong.
Green absorption line

Usually interpreted as defensive buying or support holding after selling pressure hits the bid.

Red absorption line

Usually interpreted as defensive selling or resistance holding after buying pressure hits the ask.

Very important

The line means absorption was detected. The strategy still decides separately whether that signal is strong enough to trade.

How Xtrend detects absorption

This is the raw indicator logic before extra strategy filters are applied.

1

Price trades into the edge

A real trade hits the current best ask or the current best bid.

2

Visible size is still there

The displayed queue at that edge is still meaningful instead of drying up immediately.

3

Size passes threshold

If the remaining size is at or above the absorption threshold, Xtrend calls it absorption.

4

Strategy may add filters

The strategy can then require better bar location or a reaction away from that level before it places a trade.

ASK 48
7561.25
ASK 34
7561.00
7560.75
BID 285
7560.50
BID 62
Customer reading: if selling keeps hitting 7560.75 but the bid there still looks large and defended, Xtrend can classify that as bid absorption.

Bid absorption vs ask absorption

Both are absorption, but they defend opposite sides of the market.

Bid absorption

Sellers attack into the bid, but the bid remains large enough to keep taking that selling pressure.

Typical meaning: support, slowdown, or possible bullish reaction.

Ask absorption

Buyers attack into the ask, but the ask remains large enough to keep taking that buying pressure.

Typical meaning: resistance, slowdown, or possible bearish reaction.

Absorption vs exhaustion

These two signals are related, but they are not the same thing.

Absorption

There is still meaningful size at the edge. Pressure hits it, but it keeps holding.

Idea: a passive defender is still present.

Exhaustion

The edge size is small or drying up. Pressure loses strength and the move may be running out of energy.

Idea: the aggressive side is fading, not being strongly defended.

What each absorption setting means

These are the main customer-facing controls around absorption behavior.

Use BM Absorption

Turn absorption trading on or off

If this is off, the strategy ignores absorption even if the indicator detects it on the chart.

Threshold

How large the defended size must be

This is the minimum queue size needed at the bid or ask before Xtrend accepts it as true absorption.

Lower = more signals Higher = stricter absorption
Flip Side

Reverse the side interpretation

This changes how the strategy reads the absorption direction without changing the raw detection itself.

Off: bid stays bullish, ask stays bearish.
On: the interpreted side is reversed.
Abs Near-Edge Fraction

Require the signal near the bar edge

This asks the strategy to prefer absorption that happens closer to the candle low for longs or closer to the candle high for shorts.

Lower = more relaxed location Higher = tighter edge location
Abs Reaction Ticks (0=off)

Require price to react away first

When this is above zero, the strategy waits for price to move away from the absorption level by that many ticks before trusting it.

0 = no reaction check Higher = stronger confirmation needed
Practical customer tip: if absorption appears on chart but no trade happens, the usual reasons are threshold too high, bar location not good enough, or reaction ticks not satisfied yet.

When the strategy is more likely to trust absorption

These are the situations customers usually understand best.

Clean defense Repeated pressure hits one level, but that level still looks strong and price starts to react away.
Edge location Absorption near a candle extreme is usually easier to explain than absorption in the middle of noisy rotation.
Good confirmation If price actually bounces away after the absorption, customers can see why the trade made sense.

Easy customer reading

If you want to explain absorption in one sentence, use one of these:

Bid absorption Sellers hit the bid, but a stronger buyer keeps taking that pressure and holding the level.
Ask absorption Buyers hit the ask, but a stronger seller keeps taking that pressure and holding the level.
Customer use Lower settings make absorption easier to trigger. Higher settings make it more selective and cleaner.