Understanding Aggressive Orders and Absorption with Green & Red Bubbles Introduction The Green and Red Bubble indicator identifies locations where aggressive market orders entered the market. These bubbles are not trading signals by themselves. Instead, they reveal where buyers or sellers were willing to cross the spread and trade aggressively. The market's reaction after the bubble appears determines whether those aggressive traders successfully moved the market or whether they were absorbed by passive limit orders. Understanding this relationship between aggressive orders and passive liquidity provides valuable insight into future support, resistance, and trade direction. Aggressive Orders vs. Passive Orders Every transaction requires both a buyer and a seller. There are two types of participants: Aggressive Orders (Market Orders) - Cross the spread immediately. - Lift the offer (buyers). - Hit the bid (sellers). - Create momentum. Passive Orders (Limit Orders) - Rest in th...