📘 Liquidation Heatmap — Basic Manual @tradingdiff
What are you actually seeing in these charts?
🔎 It's not an order book (like many maps you see)
👉 It shows zones where liquidations could occur.
📊 What data does it use?
The model works with a lot of aggregated information, for example:
Open Interest
Leverage distribution
Market positioning
Historical behavior
Price action
👉 All of that is transformed into an estimate of liquidation pressure
🌡️ How is the colour interpreted?
🔴🟡 Intense colours → higher concentration
🟢🔵 Soft colours → lower pressure
💥 Higher intensity = higher probability of liquidations
⚠️ Important
👉 It's a relative risk reference
🧠 What is it used for?
Detect zones where price may accelerate and/or generate liquidation cascades
Identify those possible liquidation cascades
Understand where the “exposed money” is
📌 Final key point
The Heatmap does not tell you
👉 “the price will reach here”
It tells you:
👉 “there may be forced pressure here”
And this is in real time, it's important to clarify because the market is dynamic
The rest is defined by the market:
structure, context and timing.
🔎 Price route:
https://t.co/DY4oaR3vHz
#BTC #Crypto #Trading #Liquidations
