Most Traders Misread Absorption

Why It Matters

Correctly distinguishing absorption from genuine selling can prevent traders from prematurely calling reversals and allows them to position for continuation moves; here the read supports taking a bullish breakout trade if 99 holds.

Summary

The speaker argues that many traders misinterpret absorption as bearish, but real-time footprint and ladder data show the market is absorbing sell orders while trading consistently higher (around the double‑0 level). Instead of a two‑way chop, price has moved through the prior high‑volume area, indicating buyers are overpowering passive sellers. The narrator gains confidence that the market will continue higher and expects a breakout above the recent high, provided price stays above 99. They view ongoing volume at higher prices as confirmation rather than a warning sign.

Original Description

Watching the ladder and footprint together allows traders to assess whether the market is accepting higher prices, stalling in two-way trade, or pushing through absorption with genuine continuation. That additional context helps traders hold conviction and stay aligned with momentum as the trade develops.

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