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Nikita (SEBI RA)

11th Nov Β· SEBI-Registered Analyst

Absorption Candle – Smart Money Absorbing Supply πŸ§ πŸ“ˆ

πŸ“Š An Absorption Candle shows that heavy selling is getting absorbed by strong buying β€” a bullish reversal or continuation signal. βœ… Formation: Long lower wick candle after a fall. High volume, but close near candle high. Next day follows through positively. βœ… Meaning: Smart money buying from panicked sellers. πŸ“Œ Example: Stock drops β‚Ή540 β†’ β‚Ή510 intraday, closes β‚Ή535 on huge volume β†’ next session gap-up β†’ Absorption Candle β†’ bullish continuation confirmed. 🧠 Tip: Appears most reliably at key supports or VWAP levels.

TITAN

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