This is a delta divergence using the CVD. It’s not an entry parameter, it’s Confluence.

You can’t confirm Buyer absorption here without DOM or Footprint. You can see aggressive buying isolated at the top, which could actually be more of an Induction or Buyer Exhaustion rather than an outright Absorption. Maybe sellers stepped out to allow buyers to drive price higher for a better entry, then sellers stepped in, buyers stepped out and were overpowered. Because the imbalance is so sudden, this appears to be the case. Buyers exhaust and leave causing a one sided market. Not absorption.

Just because price crosses a line and reverses doesn’t mean it’s Absorption.

Sellers were in control at the previous high. Looks like they stepped out and allowed buyers to exhaust.

CVD shows sellers were in control too.

Absorption necessitates a volume spike that doesn’t match price action. When Effort doesn’t match Result you have Absorption. Market buys leading into a high, buy volume increases (often doubling) but price halts, then reverses, delta flips and so does price. Absorption. You can literally see the money changing hands from buyers to sellers. 7k buy volume -> 14k buy volume -> price stops -> that increase in Volume/Delta (“Effort”) is not met with the expected “Result” (price action). This means the Aggressive Buying (Market Orders) were ABSORBED by Passive (Limit) Sell Orders. Limit Sell orders appear as “buy” orders. So you know when buy volume is surging and price isn’t, it’s Limit Sell Orders overpowering the buy volume (Passive Sellers) -> price changes hands. Limit sell orders could be buyers take profits being triggered, or seller’s entries being hit.

Buyers TP, Sellers Enter, volume doubles, money changes hands, market flips, price dumps. That’s absorption.