"I've been following this channel for some time now, and I'm particularly impressed with the recent addition of live streaming with no delay. The software he uses to detect stacked imbalances and execute trades is remarkable. However, there is one issue I'd like to address: how he marks absorption levels on the in-house order flow chart.

He utilizes a 32-range chart for NQ, where if the top of the candle has zero, the bottom candle has zeros as well. He employs NinjaTrader's horizontal draw tool for this purpose. But the question remains: is this truly an absorption level? I haven't entirely grasped how to identify absorption levels using the order flow chart, as there isn't much information available about it.

I'm wondering if using a time-based chart, a tick chart, or a range chart might be better for determining absorption levels. Alternatively, are there any indicators out there that are effective in identifying absorption levels?"

Don't waste your time and money with Futures Analytica. They are liars.
He uses an overlay on his screen to hide that he is using SIM/Playback.

You can find more information about them on the review page:

Futures Analytica AnalyticaChart3 + Polarity ATI I'm curious if there is anyone out there familiar with Futures Analytica and their products AnalyticaChart3 or Polarity Automated Trading Interface (ATI). AnalyticaChart3 is a order flow footprint profile add-on for NT8, and Polarity ATI an order …

To answer your question: It does not matter which type of chart you use. Use the one which fits your personality.
I am not aware of any indicators for this purpose.

octoman7 

He utilizes a 32-range chart for NQ, where if the top of the candle has zero, the bottom candle has zeros as well. But the question remains: is this truly an absorption level?

@octoman7,

Worth getting precise on this, because the distinction matters.

Zeros at the bar extremes aren't absorption by themselves -- they're exhaustion. Different thing entirely.

Exhaustion vs. Absorption

Zeros at the top of a range bar mean buyers ran out of aggressive participation -- nobody was willing to lift the offer anymore. Useful, but it tells you demand dried up, not that supply absorbed it.

True absorption is when resting limit orders (often icebergs) actively neutralize the opposing side. Price tries to move, large passive orders eat it, the level holds. What you're looking for: price STALLING against significant volume. The bid or ask holds while contracts keep printing. High volume, minimal price movement.

Think of it this way -- exhaustion is the attacker giving up, absorption is the defender actively stopping the attack. Both mark important levels but have different implications for continuation vs. reversal.

Chart Type

The 32-range NQ chart is a solid choice. Range charts give consistent price intervals, which makes stacking and imbalance patterns easier to compare across bars. Time charts introduce variable volume per bar, tick charts can chop the picture during slow periods. Stick with the range chart.

What to Actually Look For at Absorption Levels

• Price tests a level multiple times with decreasing momentum
• High volume at the level but price barely moves
• Bid or ask side absorbing significant size without yielding

Zeros are worth noting but shouldn't be your primary signal. Pair them with price behavior -- did it stop and consolidate, or just momentarily exhaust before continuing?
@NinjaTrader's footprint bars are the right tool for this on NT. If you want the raw order flow underneath the footprint, Jigsaw Depth and Sales shows the actual dynamics.

Have a good weekend!

-- Fi

"Price that absorbs volume without moving is saying more than price that moves on no volume."