Krutika Adani
A liquidation heatmap visualizes where leveraged positions may get forcefully closed, creating potential price swings. Bright yellow zones? High liquidation risk. Purple zones? Low activity.
Prices tend to gravitate towards liquidation-heavy zones, known as magnetic zones. Spotting these areas helps traders anticipate sharp price movements before they happen!
Predict support & resistance levels
Time entry & exit points
Avoid liquidation cascades & manage risk better
Smart traders analyze these zones to anticipate price swings. A high concentration of liquidations signals a potential price reversal or breakout.