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Hammer With Absorption Indicator for Sierra Chart
Custom Study for Sierra Chart
- Easy Installation
- Single Payment, Lifetime Access
- Lifetime Updates Included
- €51,95 EUR
€69,95 EUR- €51,95 EUR
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🔨 HAMMER WITH ABSORPTION
CANDLESTICK PATTERNS VERIFIED BY ORDER FLOW
🎯 WHAT IS IT?
The Hammer with Absorption is a hybrid study that combines classic Price Action structure with granular Order Flow analysis.
Instead of blindly trusting every hammer-shaped candle, this indicator looks inside the wick to verify that volume absorption actually occurred. It detects where aggressive market orders were "trapped" by passive limit orders, providing high-probability reversal signals with exact support/resistance extension lines.
Works on any timeframe. Requires tick-data/Volume-at-Price data to function (Intraday charts).
🔍 HOW IT WORKS
The indicator performs a three-step validation on every closed bar before generating a signal:
1. SHAPE CHECK
→
2. ABSORPTION SCAN
→
3. POC FILTER
🟢 LONG (Trapped Sellers)
- Shape: Bullish Hammer (Body > Open). Lower wick must be 2x body size (configurable).
- Absorption: Scans lower wick for aggressive selling (Bid Volume) that was absorbed.
- Logic: Diagonal Ask/Bid ratio > Threshold (e.g., 150%).
- Result: Signal arrow + Green Support Extension Line.
🔴 SHORT (Trapped Buyers)
- Shape: Bearish Inverted Hammer (Close < Open). Upper wick must be 2x body size.
- Absorption: Scans upper wick for aggressive buying (Ask Volume) that was absorbed.
- Logic: Diagonal Bid/Ask ratio > Threshold.
- Result: Signal arrow + Red Resistance Extension Line.
💡 REAL TRADING LOGIC
The "Trap" Scenario (Long):
Price dives into a new low. Aggressive sellers try to push price down, hitting the Bid with high volume. However, passive Buy Limit orders absorb this liquidity, preventing the price from ticking lower. The candle closes bullishly, leaving a long wick.
The Indicator's Job:
- It scans the wick specifically for these diagonal imbalances.
- It verifies the absorption occurred below the POC (Point of Control) to ensure value is shifting.
- It draws a Transparent Extension Line from the exact prices where sellers were trapped. This line becomes your future defense/support level.
⚙️ CONFIGURABLE INPUTS
- • Wick to Body Ratio: Define how strict the "Hammer" shape must be (Default 2.0x).
- • Absorption Threshold: The % dominance required to confirm absorption (Default 150%).
- • POC Filter: Filter out weak signals. Modes: None, At POC, or Below/Above POC.
- • Extension Lines: Draw transparent zones from the trapped volume levels.
✨ KEY FEATURES
- Diagonal Order Flow Logic — Uses proper tick-by-tick diagonal comparison (Bid vs Next Ask) to find imbalances.
- Trapped Trader Visualization — Draws unique "Transparent Range" lines extending forward from the exact absorption levels.
- Smart POC Filtering — Filter signals based on whether the absorption happened at, above, or below the Volume Point of Control.
- High Performance — Includes "Max Bars Lookback" optimization to ensure charts load instantly, even with complex tick calculations.
- Grouped Absorption — Detects consecutive levels of absorption to find strong zones of interest.
📊 INCLUDED FOOTPRINT TEMPLATE
Includes a ready-to-trade Sierra Chart template optimized for Order Flow scalping.
ES NQ GC
📈 Chart Configuration
- Bid/Ask optimized footprint
- Delta numbers on top of bars
- Region 2: Delta bars
- Region 3: Max/Min delta display
- Volume per bar
- Volume /sec
🎯 Intraday Key Levels
- VWAP
- RTH/LSE Open
- Previous Day Levels
- Volume Profiles: Session & 5 Days
- Initial Balance
📋 BEST PRACTICES
- Context is King: A Long Hammer is most potent when it occurs at a key level or zones.
- Use the Extension Lines: The transparent green/red lines represent where traders are "stuck." Price often re-tests these levels. Use them for precision entries on a pullback.
- Adjust the Ratio: For volatile assets (like NQ), consider lowering the "Absorption Percentage Threshold" to 120-130%. For thicker markets (like ES/Treasuries), keep it at 150%+. and adjust the number of consecutive imbalances.
- POC Filter: Enabling "Below POC/Above POC" ensures you are buying/selling value that has been rejected, increasing win rate.
- Combine with other order-flow indicators: for higher probability setups combine with Exhaustion Indicator, Bullish/Bearish POC, Delta Divergence, Delta Slingshots, Order Flow Ratio, Volume Sequencing.
Important: Make sure you have updated to the latest version of Sierra Chart
After purchasing one of our indicators, please contact us and provide your Sierra Chart username so we can activate the indicator. Once it has been activated, restart your Sierra Chart platform.
Next, open Sierra Chart and the chart where you want to add the indicator:
1. Go to Analysis in the top menu bar.
2. Click on Studies.
3. In the "Studies" window, click Add Custom Study....
4. Find your new indicator in the list , select it, and click Add.
Template included with the indicators:
Copy the template file received by email template.cht into your C:\SierraChart\Data\ folder. Restart your Sierra Chart platform, open the Chartbook
FAQs
What Sierra Chart subscription do I need to use Templates/Indicators?
To get the most out of our Sierra Chart templates, you need at least the following subscription:
“Integrated Sierra Chart with Advanced Features (Service Package 5) at 36 USD”.
We also recommend purchasing the “Denali Exchange Data Feed” data source, for access to accurate, professional market data.
(Denali : 11usd with a Stage5 broker account)
Are your templates a one-time purchase or subscription?
Our templates are available as one-time purchases, meaning you pay once and own the template indefinitely. There are no monthly subscription fees associated with our products, allowing you to use them without ongoing costs.
How to install my SieraChart template ?
- Be sure to update to the latest version of sierrachart.
- Copy the template file received by Email, template.cht into your \SierraChart\Data\ folder.
- Restart your Sierra Chart platform and open the corresponding Chartbook.
Is there a trial available for your Templates / Chartbook?
Unfortunately, we do not offer trial versions of our Templates / Chartbooks. However, we provide detailed descriptions and support to help you understand how our templates work and how they can enhance your trading experience.
Is there a trial available for your indicators / Studies?
Yes, we offer 7 days Trial for our indicators, please email us your sierra chart username for activation.
The template doesn't suit me, can I get a refund?
We are committed to providing high-quality templates. Refunds are only issued for verified technical issues with our products. Technical support is available to assist you in resolving any problems you may encounter.
I need personalized help to use SierraChart, can you help me?
Our team of traders and Sierra Chart experts also offers personalized coaching to help you get started with the Sierra Chart platform.
Can we use the templates on other markets/assets?
Our templates are optimized and configured to work on a specific market (NQ, ES, ZN, Gold...). However, if you have advanced knowledge of your market and SierraChart, it is possible to modify the settings to match the characteristics, schedules, etc. of another market.
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