Absorption Meter — M15/M5/M3

Absorption Meter — EMA200 + Wick + Absorption Combo

Absorption Meter is a synthetic orderflow/absorption tool built only on OHLCV data. It plots two lines — Buy Absorption and Sell Absorption — plus optional EMA200-based reversion and trend-continuation signals. The idea is to highlight where aggressive buyers or sellers are likely being absorbed, not rewarded.

The script uses a simple delta/CVD proxy (volume signed by candle direction), volume z-scores, candle structure (wicks vs body), VWAP proximity, and distance from EMA200. For each bar it builds two scores from 0–100:

• Buy Absorption (green): high when selling pressure is strong (negative delta and CVD slope), volume is above normal, the candle is wicky/inefficient, price is near VWAP, and the bar looks like a stall or has a strong lower wick. This suggests shorts are hitting into bids and being absorbed.

• Sell Absorption (red): high when buying pressure is strong (positive delta and CVD slope), volume is above normal, the candle is wicky, price is near VWAP, and the bar looks like a stall or has a strong upper wick. This suggests longs are hitting into offers and being absorbed.

I use this mostly as contrarian context: high Buy Absorption near lows is a reason to stop chasing shorts and look for long/cover zones; high Sell Absorption near highs is a reason to stop chasing longs and look for short/profit zones. It is not a stand-alone “buy/sell” signal.

On top of the lines, the script can draw arrows and fire alerts when several conditions align:
• EMA200 mean reversion (price stretched from EMA200, recent big wick, strong absorption).
• Optional base VWAP triggers (absorption near VWAP).
• Optional strong distance-only reversions.
• Optional trend-bias continuation (on the right side of EMA200 with supportive slope and absorption/wicks).

Key settings (short overview):
• Z-Score and Volume Z lookbacks: control how “unusual” delta, CVD and volume must be.
• ATR Length: used for volatility, gates, and EMA distance.
• Weights (Delta, CVD Slope, Volume Z, 1–Body Efficiency, VWAP Proximity): control how much each component contributes to the score.
• Gates (Small Move, Wick Size, Soft Factor): control how strict the bar structure must be to count as absorption.
• EMA200 / StdDev / distance thresholds: control when EMA reversion logic activates.
• Big Wick filters (min wick vs ATR, wick percent, body percent, reclaim rules, min volume Z): define what a real “rejection wick” looks like.
• Session filter and cooldown: restrict signals to your session and avoid arrow spam.

This is a context tool: it shows where aggressive volume is running into resistance or support so you can make better decisions around chasing, fading, or taking profits.