Traders often enter when price bounces off a level, but the real signal is order-flow absorption: a wall of buy orders that stops selling pressure, visible as a red bubble on the depth chart. Volume rising confirms buyers are defending the level, not the bounce itself.
Chapters
More traders buy when price hits a level and bounces. What they're missing is what causes that bounce before it happens. When price dips into a Value Area Low, watch for absorptions. This is when buyers step back in and start placing a wall of orders that sellers cannot push through. The selling pressure hits the wall and goes nowhere. A red bubble is being created on the sell side. It means sellers got absorbed. That bubble is the real signal. Not the candle that bounces, not the wick that forms. The absorption that tells you buyers are serious about defending that level before price even closes back inside. You will also see this in the volume bars. Volume starts picking up as the absorption happens. Buyers are actively stepping in. That is your confirmation. That is your entry. Everything before that is just noise.