ZoneTraderPro Order Flow Absorption


The ZoneTraderPro Order Flow Indicator suite identifies Absorption on a chart.  Absorption occurs when large traders use limit orders to execute a trade and absorb available supply.  

As you can see on the chart on the right, every single time a red or green absorption box was drawn, the market moved in that direction.

This is not meant to be a trading signal by itself.  If there is a pricing pattern or a Volume POC signal being given, then you likely have the justification for a trade. 

What is even more impressive is when an extension zone is also created from a large market order at the same price as we can see in this short trade.  When we have a confluence of trading indications we see great trades.

Absorption Now Combined with New Signals

ZoneTraderPro is constantly improving the Order Flow Suite.  Here we see an Absorption buy signal combined with the POC Extension and the new Exhaustion trading pattern.  Also new is the Delta Strength indicator.  On that trade the Delta Strength indicator is a black circle indicating extremely high volume.  This is extremely import to a trading reversal.  Buyers are absorbing all the contracts the sellers can give them.  Then markets orders move the market higher.  Notice how the absorption buyers came back into the market as price traded down again along with market order buyers.