The Absorption High Low study monitors volume at price data and checks for user defined absorption conditions at the lowest and highest price levels within each chart bar, up to 5 buy side absorption and 5 sell side absorption levels can be displayed per chart bar.
For the purposes of this study, absorption is defined as volume at a price level within a single chart bar, exceeding all of the following parameters: Minimum Volume at Price Threshold; Minimum Bid / Ask Difference; and Minimum Imbalance %. If the Ask Volume at Price is greater than the Bid Volume at Price then, Buy Side Absorption is said to have occurred, whereas if Bid Volume at Price is greater than Ask Volume at Price then, Sell Side Absorption is said to have occurred.
This study only checks for sell side absorption at lowest price levels and buy side absorption at the highest price levels within each chart bar. In addition to displaying markers at absorbed price levels, the study also display a marker above and/or below the chart bar to indicate whether buy and/or sell side absorption has been detected within the chart bar.
Note:
- This study can only be used on charts with a chart data type of ‘Intraday Chart‘
- It is recommended to use ‘Intraday Data Storage Time Unit‘ setting ‘1 Tick’
Inputs
Defines the minimum volume required for a chart bar to be evaluated for absorption at price conditions.
- Min: 0
- Max: 1000000
Symbol Offset (In:2)
Defines the offset, in ticks, from the bar high/low at which to display the absorption supply / demand symbols.
- Min: 0
- Max: 10
Defines the number of price levels at the high and low over which to check for absorption conditions. The number of levels checked will always be the lesser of ‘Price Levels to Check’ and ‘price levels per chart bar / 2’.
- Min: 1
- Max: 5
Minimum Volume at Price (In:4)
Defines the minimum total volume required at a price level within a chart bar before that price level is evaluated further.
- Min: 0
- Max: 1000000
Minimum Bid/Ask Difference (In:5)
Defines the minium difference between ask and bid volume required at a price level within a chart bar before that price level is evaluated further.
- Min: 0
- Max: 1000000
Minimum Imbalance % (In:6)
Defines the minimum dominant side volume, expressed as a percentage of the non-dominant side, that is required at a price level within a chart bar for that level to be considered as absorbed.
- Min: 101
- Max: 1000
Days to Calculate (In:7)
Defines the number of days over which the study is calculated, can be used to reduce the initial study calculation time when many days worth of data is loaded into the chart but this study is only required to be shown on the most recent days.
- Min: 0 (in which case all loaded bars are evaluated during the study calculation)
- Max: 1000000
Subgraphs
Default: Triangle Up
Defines the subgraph draw style properties used for Absorbed Demand Symbol Subgraph
Displays a symbol at / below the bar low if sell side absorption is detected within the specified price levels at/near the chart bar low price.
Absorption Supply Symbol (SG2)
Default: Triangle Down
Defines the subgraph draw style properties used for Absorbed Supply Symbol Subgraph
Displays a symbol at / above the bar high if buy side absorption is detected within the specified price levels at/near the chart bar high price.
Absorption High 1 (SG3)
Absorption High 2 (SG4)
Absorption High 3 (SG5)
Absorption High 4 (SG6)
Absorption High 5 (SG7)
Default: Transparent Right Side Tick Size Rectangle
Defines the subgraph draw style properties used for Absorption High Subgraphs (absorbed buying at / near bar high)
Note: The draw style, color and size properties are automatically copied from subgraph 3 to subgraphs 4-7.
Displays the absorbed buying levels with each chart bar, price levels are evaluated starting from the bar high price.
Absorption Low 5 (SG8)
Absorption Low 4 (SG9)
Absorption Low 3 (SG10)
Absorption Low 2 (SG11)
Absorption Low 1 (SG12)
Default: Transparent Left Side Tick Size Rectangle
Defines the subgraph draw style properties used for Absorption Low Subgraphs (absorbed selling at / near bar low)
Note: The draw style, color and size properties are automatically copied from subgraph 12 to subgraphs 11-8.
Displays the absorbed selling levels with each chart bar, price levels are evaluated starting from the bar low price.
