Liquidations
Last updated
Last updated
The Liquidations indicator visualizes the forced closure of leveraged Futures positions across top exchanges in real time. It provides vital insights into moments of extreme volatility caused by Long and Short liquidations, which often signal potential trend reversals, momentum continuations or liquidity grabs.
Liquidations are forced market orders triggered when a trader's margin is insufficient to hold a leveraged position. These are not voluntary trades — they often cause rapid price movements and spikes in volume, which can either fuel a trend or mark its end.
This makes it an essential tool for traders looking to understand the true driver behind price moves and detect traps, fakeouts and market maker behavior.
New Highs Liquidations
If long positions are liquidated during a breakout to new highs, it often signals a fakeout or exhaustion of bullish momentum.
New Lows Liquidations
Long liquidations at fresh lows typically indicate panic selling and can mark local bottoms.
There are two types of Liquidations indicator — standard and aggregated.
For the aggregated indicator you can change Size of liquidation (in USD), Overrides, Markets and Exchanges. Also you can change the visual appearance.
Combine Liquidations with Open Interest
Open Interest decreasing + heavy liquidations = position flush and potential reversal.
Use with Order Book Top Levels
Watch how price reacts when liquidation spikes collide with strong limit order clusters. If long liquidations happen right after a price breaks above resistance and then price returns below, it can signal a bull trap and the start of a downtrend.
Check for Liquidation Clusters
Multiple liquidation spikes in a short time frame often precede trend exhaustion or sharp reversals.
Confirm with Volume
Liquidations without supporting volume often result in mean reversion.
Use the liquidations indicator to gain a deeper understanding of the current moment! 🚀
