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LIQUIDATIONS: A Powerful Indicator for Cryptocurrency Trading

In the dynamic world of cryptocurrency trading the LIQUIDATIONS indicator offers a unique opportunity to analyze position liquidations, identify market anomalies, and predict sharp price movements. This tool tracks the volume of buy and sell liquidations, helping traders stay ahead of the market. Find out how LIQUIDATIONS can be your key to success!

What is the LIQUIDATIONS indicator?

LIQUIDATIONS analyzes data on forced closeouts of positions (liquidations) in the futures market, separating them into purchases (BUY) and sales (SELL). It shows the difference between these volumes (delta), the cumulative delta and the number of liquidations, and also highlights anomalies that may indicate major market events. This makes it ideal for liquidation analysis and volatility forecasting.

Main functions of the indicator:

  • Liquidation volumes: Displays purchases (green lines) and sales (red lines).
  • Cumulative delta: Displays the accumulated difference between purchase and sales liquidations.
  • Anomalies: Red and green circles mark unusual spikes in liquidations.
  • Flexible data: Analysis by current asset or totals (e.g. "Aggregated By Symbol").
  • Threshold Lines: Upper and lower lines to assess the significance of moves.

Why is LIQUIDATIONS unique?

Unlike traditional indicators such as RSI or Moving Average, LIQUIDATIONS focuses on liquidation analysis , providing data that reflects real market events. Here's what makes it special:

1. Anomaly Detection

The indicator highlights liquidation spikes with red (sells) and green (buys) circles. For example, a green circle on a Bitcoin chart could indicate a massive short liquidation, foreshadowing a price increase.

2. Cumulative Delta

Cumulative delta shows whether buyers or sellers are dominating liquidations. A positive delta signals that selling liquidations are dominating, which may indicate a bull market, and vice versa.

3. Analysis flexibility

LIQUIDATIONS supports analysis by individual assets or aggregated data, allowing you to study the market as a whole or focus on specific coins such as Ethereum or Solana.

4. Simplicity and visibility

The interface is intuitive: lines and circles make the data accessible even to beginners. Adjust the period (e.g. 10 candles) and anomaly sensitivity (k-factor) to adapt the indicator to your trading style.

How to use LIQUIDATIONS in trading?

The indicator is suitable for different strategies in cryptocurrency trading :

  • Scalping: Anomalies help to catch fast movements caused by mass liquidations.
  • Swing trading: Cumulative delta indicates long-term pressure, helping to choose entry points.
  • Volatility Analysis: Liquidation Spike Predicts Sharp Price Changes.
  • Early Signals: Anomalies give you a head start on big market events.

Imagine you're trading Bitcoin and LIQUIDATIONS shows a red circle - a liquidation anomaly. 20 minutes later, the price drops by 1.5%. This is your chance to short or lock in profits ahead of the market.

Try LIQUIDATIONS today!

If you want to understand the market more deeply and use liquidation analysis to your advantage, LIQUIDATIONS is your best tool. Its ability to detect anomalies and analyze cumulative delta makes it indispensable for traders of all levels. 168>

Start using LIQUIDATIONS right now. Register on our platform and discover new opportunities for successful trading!