MMT Sponge is an order-flow absorption indicator designed to reveal something that an ordinary price chart cannot show you: where aggressive buying or selling is hitting the market hard, but price is refusing to move with it.

Think of the market like a sponge.

Sometimes sellers aggressively hammer the bid, yet instead of price collapsing, all of that selling seems to get soaked up by buyers. That can be evidence that a large or persistent buyer is absorbing the selling pressure.

The opposite can happen at a high. Buyers aggressively chase price and lift the ask, but price simply refuses to continue higher. Their buying is being absorbed by sellers.

That hidden battle is what MMT Sponge is built to detect.

Instead of looking only at candles, MMT Sponge analyzes the order-flow activity occurring inside the candle and at individual price levels. It looks for unusually strong concentrations of aggressive buying or selling, compares the two sides, considers where that activity occurred within the candle, and measures whether price actually rejected that area afterward.