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.

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