Absorption Candle β Smart Money Absorbing Supply π§ π
π An Absorption Candle shows that heavy selling is getting absorbed by strong buying β a bullish reversal or continuation signal.
β
Formation:
Long lower wick candle after a fall.
High volume, but close near candle high.
Next day follows through positively.
β
Meaning: Smart money buying from panicked sellers.
π Example: Stock drops βΉ540 β βΉ510 intraday, closes βΉ535 on huge volume β next session gap-up β Absorption Candle β bullish continuation confirmed.
π§ Tip: Appears most reliably at key supports or VWAP levels.
TITAN
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