Absorption Range Indicator

Detects large range M1 or M5 candles where price shows significant effort but closes near its open, signaling absorption of aggressive orders by larger players. Flags potential exhaustion/absorption points useful for Forex scalpers in high liquidity pairs during key sessions.

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Outputs / plots

Latest changelog

Initial release.

Version history

let range = high - low
let avg_range = sma(range, len)
let close_to_open_dist = abs(close - open)
let close_proximity_threshold = avg_range * proximity_factor
let is_large_range = range >= avg_range * large_range_mult
let is_close_to_open = close_to_open_dist <= close_proximity_threshold
let absorption_candle = and(is_large_range, is_close_to_open)
plot("range", range)
plot("avg_range", avg_range)
plot("close_to_open_dist", close_to_open_dist)
event("absorption_signal", absorption_candle)

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