🔥 The simplest way to understand where the market actually takes money
The liquidation heatmap shows price levels where mass forced position closures with leverage are concentrated. Simply put — places where the crowd will lose money if the price reaches them.
On the map, you can see bright liquidity zones:
🔻 Below the price — long liquidations
🔺 Above the price — short liquidations
These areas are called "magnets." The price often gravitates towards them because that is where large players need liquidity to enter or exit positions.
💡 How to use the liquidation map profitably?
1️⃣ Setting targets If there is a concentration of short liquidations above the price — a short squeeze is possible. 📌 It's better to set Take Profit slightly before the zone, rather than in it.
2️⃣ False movements and reversals The price often enters the liquidation zone, triggers stops — and only then reverses. 📌 The best entries are after liquidity has been collected.
3️⃣ Smart stops Stops in obvious areas are easy prey. 📌 Place your stop beyond the "magnets."
4️⃣ Strengthening TA When liquidations coincide with support or resistance — it’s a strong signal.
🟢 Use it with TA and trade like smart money, not like the crowd. 💰