Absorption and exhaustion: reading reversals on the heatmap
Published 6 d ago · 1 min read
The two most reliable signals to anticipate a reversal — explained simply.
Anticipating a reversal isn't guessing: it's reading absorption and exhaustion on the heatmap.
Absorption
When aggressive flow hits a level but large passive orders soak it all up without giving way, price stops moving despite the volume. Aggression burns out: a reversal is likely.
Exhaustion
A volume climax that no longer moves price signals the last buyers (or sellers) entered at the worst moment. Paired with delta and CVD, it's a powerful signal.
Combining them
- Spot absorption on the heatmap.
- Confirm exhaustion with the footprint and a delta divergence.
- Frame it around the POC.
For the full method, read our order flow and heatmap trading guides.
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