Absorption and Sweep
A sweep is a flurry of aggressive trades on the same side in a short time. It may indicate urgency of buying or selling. Absorption occurs when there is a lot of aggression, but the price does not move proportionally.
Sweep example
If several large buys appear within a few seconds, TapeRadar can classify the event as a buy sweep. The opposite applies to large sequential sells. In futures, sweeps can also be cascading liquidations — see how to read whales.
Example of absorption
If buyers attack the book with significant volume and the price barely rises, there may be a counterparty absorbing this aggression. In this scenario, chasing the aggressive side is usually a trap.
How to use in practice
- Do not enter the first print of the sweep; wait for the reaction
- Check whether the CVD follows or diverges from the price
- Compare spot and futures before giving weight to the event
- On an illiquid altcoin, an apparent sweep may simply be ordinary noise
Where to trade with what you read on the tape
TapeRadar does not execute orders. If you decide to trade, use a liquid exchange, 2FA and keep position sizes small. Binance for majors and depth; MEXC for alts and listings.
Referral links (Binance and MEXC). We may receive commission if you register and trade at no extra cost. This is not financial advice. Crypto involves high risk.