Absorption Detector

Source: Prof Michael G.
Credit: GreatestUsername for the coding & implementation.

Zones of Support and Resistance can feel like drawing boxes on the chart. This indicator to help spot areas of possible reversal. It uses Volume Confirmation and Body-to-Wick Ratio to do this and defined as:

1. Volume Confirmation
High Volume: A candle that absorbs sitting limit orders is often accompanied with higher than average volume. The indicator define this type of candle if it has a volume is greater than 250%/350% of the average volume over the last 10 candles.

2. Body-to-Wick Ratio
Body vs. Wick: A candle with a small body and large wicks can indicate higher probability of reversal. You can define an absorption candle if the body of the candle is less than 50% of the total range (high-low).

These settings are also customizable to your own desired settings and should be used as a visual aid.