Signs of Selling Pressure (Absorption of Buys at Highs)🧠 Quick Terminology Refresher:
Absorption = Large volume hitting the book with little price movement (strong limit orders halting progress).
Exhaustion = Declining volume near highs/lows, indicating a potential reversal or lack of continuation.
Delta = Net buying/selling pressure (positive = aggressive buyers, negative = aggressive sellers).
Imbalance zones = Strong activity favoring one side of the market — high-probability interest areas.
🔎 Breakdown of Key Zones (Right Side of the Chart – May 20–21):
🔴 Signs of Selling Pressure (Absorption of Buys at Highs)
May 20 Candle:
Delta: -1.37K on 80.27K volume = net sellers present.
Upper wick shows buy volume at the highs being absorbed by resting sell orders.
Price fails to close above 42,300, the same level it touched multiple times (look left), reinforcing it as resistance.
The cluster of buying at the highs followed by price dropping suggests buying exhaustion + absorption by sellers.
🔻 May 21 Candle (Early):
Delta: -387 on low volume (21.68K) — early in the session.
Low delta but presence of symmetric buy/sell volume suggests a balance day or low conviction.
However, failure to break back above the previous POC zone (around 42,200–42,300) + no aggressive buying continuation = bearish bias.
🔵 Prior Bullish Activity (May 15–19):
May 15: Strong positive delta (+3.84K) with 99.68K total volume — clear initiative buy pressure.
May 16–19: Successive candles show diminishing delta and heavy total volume with:
Imbalance blocks shifting down.
Lower highs and failed follow-through after May 15 = exhaustion of buyers.
Especially May 19: delta of -1.14K, and large wick + failed upside = absorbed buys, followed by rejection.
🧱 High-Volume Nodes (Support/Resistance):
Resistance Zone: 42,270–42,300
Multiple failed closes above, heavy sell volume absorbed buyers.
Support Zone: 42,000–42,100
Yellow highlight zone — recent volume nodes + last remaining absorption candle May 14–15.
But current candles are testing this zone, and not bouncing with strength.
📉 Conclusion: Sell Bias Based on Footprint Behavior
✅ Reasons to Lean Bearish / Sell:
Absorption at highs (May 19–20).
Exhaustion of buying delta after May 15–16.
Lower highs and lower volume follow-through.
Price failing at POC/resistance zones (42,300) repeatedly.
No new aggressive buying footprints in current bars.
⚠️ Not a Blind Sell – Wait For:
Break and hold below 42,100, ideally confirmed by:
Negative delta + rising total volume.
Sell imbalances near lower levels.
Signs of no strong passive buyer absorption at 42,000.
🛠 Suggested Strategy:
📉 Short Bias: Target zone: 41,850–41,900
📈 If price reclaims 42,300 with positive delta spike, exit shorts or flip long (failed breakdown = trap).
🎯 Watch Volume Profile: Large nodes mean congestion — avoid taking new trades in the middle of these zones.
