Absorption Reversal | Delta Trap — Strategy by blitz_locked
By blitz_locked
Performance Metrics
- Author: blitz_locked
- Symbol: NASDAQ:TSLA
- Timeframe: 30 minutes
- Profit Factor: ,
Description
This strategy looks for the moment aggressive traders pile into a level and get stopped cold. It finds candles where heavy one-sided delta hits a swing high or low but price doesn’t follow through, then trades the reversal once price confirms the other side is winning.What is absorption?Delta is aggressive buy volume minus aggressive sell volume. Normally, big delta moves price. Absorption is when it doesn’t: lots of aggressive buying goes in, but passive sellers keep filling it, price stalls and rejects, and the buyers are left trapped near the high. The same applies in reverse at lows.How the strategy works1. Detection. A bar is flagged as absorption when all of these hold:Its |delta| ranks in the top percentile of the last 500 barsIts body is small relative to ATR, or it closed against the deltaIt makes a new swing high or lowIt has a rejection wick at that extremeOptional: delta is at least a set percentage of the bar’s volume2. Direction. Buy delta absorbed at a high gives a short setup. Sell delta absorbed at a low gives a long setup.3. Confirmation. By default the script waits up to 3 bars for a candle to close back through the absorption candle’s body. If price takes out the absorption extreme first, the setup is cancelled.4. Risk. The stop goes beyond the absorbed extreme plus an ATR buffer. The target is an R multiple. Optional break-even and a time stop manage the trade.FeaturesIntrabar delta estimate from a lower timeframe, with a bar-shape fallbackThree sensitivity presets (Low, Medium, High)Confirmation on or offWick zones projected right until a candle closes through themOptional EMA trend filter (with or against trend), session filter, and long/short togglesATR-based stop, R-multiple target, break-even, and time stopSkips trades where the stop is too tight or too wideLive stop and target lines on the chartStats table with delta source, trade count, win rate, profit factor, and net profitTipsStart on liquid instruments with real volume, such as futures, large-cap stocks, or major crypto, on 5 to 15 minute charts.Absorption works best at meaningful levels like range edges, prior highs and lows, and session extremes. Treat signals in the middle of nowhere with suspicion.Try the “Against EMA trend” filter to restrict trades to pullback-style setups, or “With EMA trend” to take only reversals that rejoin a trend. Compare both.Raise sensitivity for more signals and expect more noise. Lower it for fewer, cleaner ones.Turn confirmation off to see raw signals, but expect more false entries.Check the “Delta source” row in the table. If it says “bar shape (est.)”, the delta is a rough proxy.WarningsDelta is estimated. TradingView doesn’t provide true bid/ask order flow. Results are only as good as the proxy, and tick-count feeds (many forex and CFD symbols) are the weakest case.Absorption can fail. A large passive order can be overwhelmed. Every trade relies on its stop.Backtests aren’t predictions. Results depend heavily on the instrument, timeframe, commission, and slippage, and it’s easy to overfit the settings. Test on multiple symbols and periods, and forward test before risking capital.Default sizing and costs are placeholders. Set them to match your own account and market.This is an educational tool, not financial advice.