Trading Strategies
January 5, 202410 min read

Sweeps and Absorptions: Reading Order Flow

Sweeps show aggression. Absorptions show resistance. Combine them with depth and lead-lag for higher quality entries.

Signals screenshot

Two signals traders actually care about

In perpetuals, most price moves are a tug-of-war between aggressive market orders and passive liquidity. DOPE surfaces this as two easy-to-read concepts:

  • Sweep: aggressive buying/selling that walks the book (market pressure).
  • Absorption: repeated aggression that fails to move price (hidden liquidity soaking it up).

What a sweep looks like

A sweep often shows up as a fast price jump with heavy taker volume. Sweeps matter because they often kick off lead-lag moves across venues.

Big sweep signal example in DOPE
Sweep checklist
  • Did the move happen on the leader venue first?
  • Is depth thin in the direction of the sweep?
  • Did other venues start converging (followers catching up)?

What absorption looks like

Absorption is when aggressive orders keep hitting a level but price fails to break. It's a sign that a larger participant is providing liquidity (or defending an inventory level).

Sweeps and absorptions signals shown in DOPE
Common mistake
Traders treat absorption as a guaranteed reversal. It isn't. The better read is: if absorption breaks, the move can accelerate because the defending liquidity is gone.

Combine signals + depth + lead-lag (the robust way)

The most reliable workflow is to stack context:

  1. Lead-lag tells you who moves first.
  2. Sweeps/absorptions tell you why the move is happening.
  3. Order book depth tells you where price is likely to stall or accelerate.

To go deeper on the metrics, see Signals (Learn) and Order Book Depth (Learn).

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