diff --git a/Indicators/MyIndicators/Quant/Absorption_Pro.md b/Indicators/MyIndicators/Quant/Absorption_Pro.md new file mode 100644 index 0000000..ad55bb9 --- /dev/null +++ b/Indicators/MyIndicators/Quant/Absorption_Pro.md @@ -0,0 +1,49 @@ +# Absorption Pro (Indicator) + +## 1. Summary + +**Absorption Pro** is a specialized Volume Price Analysis (VPA) tool designed to detect **Institutional Intervention** (Smart Money activity). It identifies specific candles where massive volume is traded but price movement is restricted ("Effort vs. Result" anomaly), signaling that a large player is absorbing the order flow. + +The indicator visualizes these events not just as signals, but as **Active Supply/Demand Zones** that remain valid until the price breaks through them. + +## 2. Methodology & Logic + +The indicator combines volatility, volume, and candle structure to identify three specific market conditions: + +### A. The Signal Logic + +1. **High Effort:** Relative Volume (`RVOL`) > 2.0. (Volume is 200% of average). +2. **Low Result:** Candle Body < 0.35 * ATR. (Price failed to move proportionally to the volume). +3. **Direction:** Determined by the Close position within the High-Low range. + * **Bullish Absorption:** Close in the upper 66% (Buying absorbed the selling pressure). + * **Bearish Absorption:** Close in the lower 33% (Selling absorbed the buying pressure). + +### B. The Climax Logic + +* **Condition:** `RVOL > 3.5` AND `Body < 0.6 * ATR`. +* **Meaning:** Extreme volume exhaustion. Often marks the exact top or bottom of a trend. + +## 3. Visualization + +* **Arrows:** Marks the signal candle immediately. + * 🟢 **Green Arrow:** Bullish Absorption (Potential Bottom). + * 🔴 **Red Arrow:** Bearish Absorption (Potential Top). +* **Active Zones (Rectangles):** Draws a shaded box covering the High/Low of the signal candle. + * **Dynamic Extension:** The box automatically extends to the right into the future. + * **Breakout Detection:** The box stops extending (terminates) the moment a future candle closes *beyond* the zone limits. This keeps the chart clean and shows only valid, untested levels. + +## 4. Parameters + +* `InpATRPeriod`: Lookback for volatility normalization (Default: `14`). +* `InpRVOLPeriod`: Lookback for volume average (Default: `20`). +* `InpHistoryBars`: How far back to scan for signals (Default: `500`). Keep this reasonable to save performance. +* `InpShowObjects`: Toggle drawing of the Supply/Demand rectangles. (Buffers are always calculated). + +## 5. Strategic Usage + +1. **Reversal Entry:** + If price approaches a support level and **Absorption Pro** prints a Green Arrow + Zone, it is a high-confidence reversal signal (Limit orders are active). +2. **Breakout Failure (Fakeout):** + If price breaks out of a range but immediately prints an opposing Absorption signal, the breakout has likely failed (Trapped Traders). +3. **Target Selection:** + The extended rectangles act as magnets. If you are in a trade, use the *next* active Absorption Zone as your Take Profit target.