Absorption happens when lots of retail traders buy at a key resistance (like an old high), expecting the price to keep going up. Big institutions take advantage of those buy orders to sell into them. Since institutions have more power, price quickly drops, leaving the retail traders stuck in losing positions.
Mark your levels and wait for price to approach them.
Reset your DOM before price hits the level.
If the DOM shows heavy opposing orders (looks like your level will break) but price quickly rejects and moves your way, that’s likely institutions absorbing retail orders — you can enter there.
Watch the middle column (market orders), not limit orders.
Absorption can also happen over several ticks (e.g., 300 buy orders spread across 3 ticks).
Basically: look for big market orders at your level that don’t push price through, but instead get absorbed and reverse.