Absorption Bubbles updated

Overview

This indicator spots moments when one side of the market is actively absorbing pressure from the other by displaying bubbles on candle wicks. Rather than just looking at raw volume numbers, it compares current activity against a rolling average you can customize with the Lookback Period setting. Bubbles show up on either the top or bottom wick depending on whether buyers or sellers are doing the absorbing, helping you identify where aggressive orders are being soaked up at important price levels.

How It Works

Absorption happens when one side of the market takes in all the aggressive orders from the other side, essentially blocking further movement in that direction. The indicator measures volume relative to what's normal for your chosen timeframe, filtering out the noise so you only see meaningful signals.

When you see green bubbles on upper wicks, that's sellers absorbing buying pressure—buyers tried pushing the price higher, but sellers stepped in and absorbed it all. Red bubbles on lower wicks show the opposite: buyers absorbing selling pressure as sellers tried pushing down but got met with strong buying interest.

The indicator also colors entire candles red when heavy volume is packed inside the body during aggressive selling, and green when strong volume appears during aggressive buying moves.

You control the sensitivity through the Lookback Period, which determines how many bars are used to calculate what "normal" volume looks like. Optional volume lines can extend forward from the strongest absorption points, giving you visual markers of where significant activity occurred.

Key Features

Volume analysis normalized against rolling averages instead of fixed thresholds

Customizable lookback window to match your trading style

Bubble size scales with absorption intensity—bigger bubbles mean stronger absorption

Clear visual separation between buying and selling absorption

Alert options for buying absorption, selling absorption, or any absorption event (triggers only at bar close to reduce false signals)

Automatic bar coloring when major absorption happens within the candle body

How to Use It

Start by adding the indicator to any chart and timeframe you prefer. Tweak the Absorption Threshold to filter out weaker signals—higher values mean you'll only see the most significant absorption events. Adjust the Lookback Period based on whether you want to capture recent activity (shorter period) or smooth out longer-term patterns (longer period).

Red bubbles on lower wicks often signal potential upward reversals since buyers are absorbing downward pressure. Green bubbles on upper wicks suggest resistance to further upside, potentially leading to downward movement. Larger bubbles always indicate stronger absorption compared to recent volume activity.

If you increase the Absorption Threshold, you'll see fewer bubbles overall but they'll represent more significant events. Changing the Lookback Period affects what the indicator considers "normal"—shorter windows make it more reactive to recent changes, while longer windows help filter out short-term volatility.

You can enable alerts for specific absorption types or catch all absorption events. These alerts only fire when the bar closes, helping you avoid getting pinged on every minor fluctuation.