INTELLECT_city - Liquidation Map - Market Maker — Liquidation Map.

The Liquidation Map predicts the price levels at which large liquidation events are likely to occur.
Market Maker (its algorithm always moves the price in the direction of the largest number of liquidations, so that exchanges can get the best possible profit. In turn, thanks to this algorithm, we can see further events and be one step ahead of traders.


A liquidation event occurs when a trader's positions are closed due to price fluctuations, and his margin account balance is insufficient to cover open positions. To prevent further losses for both traders and exchanges, most exchanges offer a liquidation level, which is the price at which leveraged trades will be forcibly closed.

Traders who can estimate the liquidation levels of other traders can gain an advantage similar to understanding high liquidity in the order book. The Liquidation Map from INTELLECT_city attempts to predict where large liquidations are likely to occur, to help traders find better positions. liquidity.

The Liquidation Map calculates liquidation levels based on market data and various amounts of leverage. The calculated levels are then added to the prices on the chart.

As more estimated liquidation levels are added to a given price, the colors on the heat map change. The color range goes from purple to yellow, with yellow representing a large number of estimated liquidation levels, allowing traders to identify areas of high liquidity.

The Liquidation Map predicts where liquidation levels are likely to start, but not where they will stop. Therefore, the actual number of liquidations will be lower. When considering the size, it should be considered as a relative figure, compared to other levels. Users can filter by multiple major exchanges, trading pairs, and historical liquidation data.


How Traders Can Use It:

The Liquidation Heat Map allows traders to identify areas of high liquidity, which can be useful for a number of reasons:

Magnet Zone: A concentration of potential liquidation levels in a certain price range can indicate that the price is likely to move in the direction of this zone. Some traders use these liquidation levels to assess the possible direction of price movement and as additional indicators of convergence.

Support/Resistance Zone: In high liquidation zones, large traders or “whales” can quickly enter trades at favorable prices. Once they enter or exit orders within this liquidity, the price can reverse.

Furthermore, liquidation levels can exert significant pressure on both the buy and sell sides of the order book, causing a natural price reversal.

Liquidations play an important role in the cryptocurrency market as they have a significant impact on traders’ positions. By understanding how to use the data from the liquidation heat map, traders can make informed trading decisions and potentially increase their chances of success.