Liquidationlevels
Liquidation-Level LibraryThis is a follow up information, the function-Library used to create this drawings here is now released.
Feel free to connect whatever indicator you like to create the starts
on the bottom of the library you can see a standard implementation,
a short example:
//define:
var Liquidationline Liqui_Line_L = array.new ()
if Any_alert
f_liqline_add(_Liqui_Line = Liqui_Line_L, linetoadd = set_l,_limit = 250)
f_liqline_draw(_Liqui_Line = Liqui_Line_L, _priceorliq = priceorliq)
f_liqline_update(_Liqui_Line = Liqui_Line_L, _killonlowhigh = killonlowhigh)
BTCUSDT - Who is next to liquidate? Guess or Chess? Hallo to all. Here, we present something we wanted to share publicly, since we started the development of the Liquidations Levels indicator, 1.5 year ago.
We think it is useful, because It has to do with the accuracy of the result and the indicator.
We compare what you might think it happened (when using the indicator) with the reality, what really really happened in the charts.
To be honest: The accuracy of the results was always a question inside our mind. If we couldn't validate the calculations in reality, then the indicator is useless or it might lead to misunderstanding or, worse, misinterpretation.
Some things first:
The indicator is trying to calculate the other traders large over-leveraged positions at the time they opened, plot them in the chart exactly when they opened and to track the pair Price Action (recaction) for these.
The Market Maker, is always, hunting these positions and is trying to create Max Pain for these type of positions, by hitting them, usually in bunches/groups of them, with wicks or aggressive moves.
Liq Levels calculations: In order to do the correct calculations, we were forced to make (like on every algorithm) some mini-assumptions about the calculations.
It's like the Fast Fourier Transform sampling (FTT) coming from the Signal Processing Theory, we have learned in Communications on University, many years ago.
The sampling , the interval , the period are extremely important parameters. Especially here, for each parameter, even a change of 0.01 percent will lead to different results. So we must be accurate.
So... The 1 million dollars question: Does the indicator shows real liquidations? Is the MM actually liquidate trades positions in the indicators levels we have calculate?
Can we trust the indicator in the Trading View?
The answer is YES. It is a 100% validation.
After a long time, we have finally managed to plot all the real time liquidations that happened in Binance Futures pairs, directly in the chart. These data are collected by the official feed from the Binance API.
So, every green "X" you see in the following chart, is a single liquidation of a Long Position and every red "X" is the liquidation of a Short Position. On the same chart there are also plotted the Liquidation levels indicator with their lines. I think the chart speaks for it self.
Where the liquidation levels plot a line, and when the price went there finally, there exactly, the liquidations happened.
The validation of Liquidation Levels with the real liquidations:
If someone asks me, about what will be the next move, I will answer to him/her with something else:
Noone knows (except the MM), but with the use of the liquidation levels indicator, you can help yourself, and transform your trading style, from a Guess game, to a Chess game. Use your mind, evaluate the situation, and think like the MM.
What you will do next?
This will be another story to analyze.
Best regards to all,
the Mobility in Life Applications TEAM
(developers of the Liquidations Levels indicator)
BTC Short Follow Up to inverted scales chartJust curious what everyone thinks is the only I published the original range charts I used to devise those trades. I believe I am adjusting my stop since I am not using leverage and really am not worried about it. I know many use leverage is why I set reasonable stops on these ideas. I also understand that for some leverage might be the only way they believe they can build a small account. For some it may work if they have a lot of experience but for most leverage just kills accounts. If no leverage was being used and no liquidations levels were there I wonder how the market would behave? Sorry, that thought just came to me as I was mentioning the risks of leverage. Kind of thinking out loud a bit there. Leverage contributes a lot to price volatility, I know that.
Sorry anyway here is the follow up chart. It's the same just with the scales regular. I locked the PTB ratio on both charts to be able to size the chart to fit the data. Hopefully everything remained proportionate, but it is easy to really mess up a chart when you start messing with those and I did so in a hurry. Enjoy. I believe the more information you have the better decision you can make about anything. By data I don't mean indicators but actual data. Also volume profile I was using for the regular chart doesn't work well on range charts so ignore that. I do believe those liquidations at the suggested new Stop loss would be the end of the uptrend were it to reach that level. Funny how that looks like a supply area now isn't it?
This part of the trade is kind of an experiment. The original long was almost as good as they come in my opinion anyway. That was one of my better trades. I still see price being held up and I believe those liquidations are a big part of it because ultimately they are technically liquidity.
Please share your ideas and opinions. I look forward to hearing peoples thoughts here. I am sure some will have some strong opinions. From what I can see and have seen though it makes sense to me. I might be doing a poor job of explaining it though as I was never teacher, I was always more doing then teaching.
SBTC Short Possible SL Update New high leverage positions opened on top of my SL on the BTC short follow up trade I have active. This is an inverted range chart showing liquidation levels and a good view of market structure. You should clearly see why I am adding more risk by adjusting my SL to that level. This should make it easy to see why I have opted to take this trade. At least it is my logic behind this trade. Worked well on the way up should work just as well going back down. Looking at the market this way helps make things much clearer to me. I believe it is why the institutions and market makers use inverted charts so often. Could be just to mess with us but I doubt it. It does cause the opposite effect so many experience in the markets.
Maybe this will give someone a fresh perspective on the markets. I know it did me a long time ago, especially when seeing the liquidation levels and how they are drawn. Pay close attention to how it is drawn. This is as close to live levels as I can get on TV. They are added with each new bar. I will post the regular version as a follow up and let it populate the amounts of each of the liquidations and other data. To really see it I recommend seeing it on a live chart, it is quite something to see.
I hope this doesn't cause more confusion but for me it made things so much clearer. It was confusing at first though. I also market where my weaker stop loss was at or close to it. I didn't plan on publishing the charts because it is a mess and the scales are adjusted poorly so everything may be seen. It was a large trade range.
This will also help show you what's going on but not as clearly and doesn't show liquidations. This is BitFinex chart with an aggregated heatmap overlay also and the one on here KuCoin cause that is where my trade is at, but I prefer using BitFinex charts cause they go all the way back or at least further back then any other ones I know of.
bitcoinwisdom.io
Curious what others think? Should SL be adjusted and add more risk to the trade or keep it as it is. I can't modify it on the publish cation so if we decide to modify it it has to be marked manually. There might be no need to as the trade was progressing nicely. It does look on the smaller time frames that it could take out that SL at the current level. Tough decision. Need to reanalyze the higher timeframes as I haven't done that since I published this idea.
Liquidation Levels LongSorry this might be too late... This is a trade based on where liquidation will occur.... It cleared below and should swing high to clear above. This was rushed and not super accurate as far as where things are at. It wouldn't let me publish at a lower resolution that shows all the liquidation levels. It also could continue down and for the last of the lower which will stop me out but I see the liquidity above more attractive. Sorry for the rough publish but had no real time to prepare it. My Entry was 21555 and SL set below where I drew it. Also Trading View has terrible charts for viewing this. I use a third party tool that I can't port in. THIS IS HIGH RISH TRADE! Catching a falling knife based on where the market should want to go. Could play it safe and wait for proper entry but in these types moves there usually isn't time. It could go much higher or 23000 if not enough liquidations occur.,
-NFA
CHZ Possible bounce in Fib Golden pocket areaBYBIT:CHZUSDT
Has retraced to a Fib Golden pocket area after making a local high.
Awesome Oscillator and RSI look to be printing Bullish divergence on the 30m. Wait for confirmation.
Look for longs in this area WHEN YOU SEE A SIGN OF STRENGTH - (i.e. swing failure pattern or morning star candle pattern)
Possible Double bottom at Orange circle area.
If no sign of strength and price falls through this golden pocket area (0.618 and 0.66 Fib), do not enter as market structure would have been broken.
When price hits the short stops area, expect price to shoot up as those shorts covering will re enter the market as longs. These can be used as TP areas.
Tight stops
Not financial advice. DYOR. Papertrade before using real money
CHZ Short IdeaBYBIT:CHZUSDT Order flow showing big longs that have opened at the top of the 30m candles.
Swing failure pattern rejection has happened off the Value area high and Daily resistance, also a Fib golden pocket level.
PSAR has already printed a short signal on the 15m and RSI in overbought territory. If 30m and 1hr prints sell on PSAR, this could potentially be a good trade.
Long stops most likely placed between 0.1295 and 0.13120 as it is below the swing low on the 1hr.
If price hits this zone, we will most likely see quite a few longs liquidated and a run down, possibly to the POC for a 10% gain.
T P O Chart shows single prints below this level, which means price is likely to run down without much resistance to the POC.
Ideally you would have entered around 0.13500, but Tight stops and Stops in profit if you decide to enter as price drops through the liquidation zone.
Not Financial Advice. DYOR!
EUR/AUD: Short positionEuro it's look that could to weakness in ffron of australian dollar and our key support it's find down to $1.4962 and also, from thisbview. I see a weakness. It's good to make an entry from 30 minutes but I use H1 to look better and what happening now that we forming a manipulation structure and liquidatiln in that zone.
Im in short and i entry around $1.5197 AUD with SL at $1.5245 AUD and my target toward $1.4960 AUD
Good luck
For reference, goes to H4 timeframe and it's very clearfully what happen.
USD/CAD: Liquidation zone to sellUSD could to forming this market structure to note it. In case, we would make to sell U.S. Dollar against Canadian Dollar. But maybe, I expect that USD make a little up movement to $1.2843 CAD, also I put an alarm on $1.2840 CAD to being informed that USDCAD up, and then, we would need to hope a bearish candlestick group of confirmation to sell and entry in short in this trade
For reference: We have 2 news in USA about:
1) Consumer Price Index; measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
2) Initial Jobless Claims: measures the number of individuals who filed for unemployment insurance for the first time during the past week
But I hope a bad news about more in the Consumer Price Index as inflation take bad expectative in America.
Good luck in this trade.
BTC Swing Long to 50kEntering a long trade given that we may be at Elliott wave 4 of 5. Will take profit along the red horizontal lines noted on the chart between 45k to 50k.
Fear & Greed indicator reads as neutral and the liquidation levels adjusted for a daily time frame read below the while dotted, suggesting that there's still room in this uptrend before another corrective fractal comes in place.
This idea is only valid as long as we hold the white solid trend where the price current sits ~41k and we don't fall under a 50% fib retracement of waves 2 to 3.
Trade
entry: 41.1k
sl: 40k
tp: 45k, 47k, 50k
Elevate Your Trading | How to Track Liquidity and How to TradeEver thought a price moves because it's on support level or below a resistance level? Or because your favourite indicators show a buy/sell signal and you want the price to see the same and move in you favourite direction? A Big No, dear. That simply won't happen...
The main gyrator of the market is "Liquidity"
What is liquidity?
Liquidity, in very simple terms, is where stops are. And that's (mainly) below relative equal lows or above relative equal highs... So you're now maybe thinking, "well, that's why I get stopped out just before the price moves violently in my previous direction.."
Exactly, that's it... Learn how to see where liquidity is resting and how to to become engaged in a good trade...
That's exactly what I want you to do...
And here is one lesson of many that I will post.. in addition to live calls when I see high-probability setups... I will turn your eyes to it...
Ther are a lot more to come, so don't forget to ▶️ LIKE ▶️ FOLLOW to keep updated with everything I post..
Let me know in the comments what you wanna be the second lesson on..
Good Luck&Be Safe
The Weakness of BitcoinAs Bitcoin continued to rise, there was some point where it was due for a massive liquidity Grab. Couple of days ago, it just did that. Bitcoin dropped over 18%. As of now, Bitcoin is currently consolidating. Base on my TA, I am waiting for the Break down and a re-test for confirmation. Below 30k, there is a lot of Liquidity and I would not be surprise if there is a giant wick that liquidates the area.
For now, there is no trade because we are in a ranging area, If you know how to trade consolidation, go for it,
Also, keep in mind Altcoins has been exploding even though bitcoin has been falling, this indicates that the top is almost in.
Good luck to all.
CADCHF- Ascending channel Technical Analysis:
-From the 4 Hour and 1 Hour chart show strong bullish momentum.
-Price has been trading in the ascending channel since 27th April.
-We should look for a long entry on the retracement of the liquidity zone
-According to the algorithm I use, price could shoot up to 0.59% and tomorrow with a 0.75% gain to the upside.
-This is a good indication to enter long for this position.
Fundamental Analysis:
- There are are no high impact news for today which will affect the pair.
- However there is a major impact tomorrow on the Cad as they are announcing their GDP Reports at 1:30.
- I would advise to not trade around these times as price will be very volatile.
Sentiment Analysis:
- According to market sentiment, 83% of retail traders are short on this pair.
- Normally I would go against the retail traders as 90% of them lose their capital.
- Asset managers/industrials and Leveraged funds are all placing long positions for this pair.
Lets see how this trade plans out!
Make sure to Follow, like and comment your ideas for this pair!
Short Term LongI am Mid term Bearish. just expecting some squeeze up to grab liqidity before further move down
BTC- New trend in the development...? (sentiment, liquidity)BTC is off to the good start this year! Can it last though?
I will spare you the head and shoulders bottom. Let's focus on the sentiment analysis because I think it provides important clues for the potential trend reversal.
It is good that BTC broke out of the 6 months downward channel with above average volume on the daily timeframe and also managed to bursted through two resistance lvls in the process. Both are good indicators of potential trend reversal.
This price move will be more convincing If the price can manage to close the daily above 8.2k to 8.3k
On the fundamental side, Iran news and all-time high hashrate might have something to do with this price spike or it might be the pure technical move.
It is still too early to rule out the possibility of liquidity raid even though I suspect most of the shorts at this lvl have been taken out already during last year's Oct price spike.
Quick glance at the latest COT report about CME futures indicates that institutional players are still overwhelmingly net short, which indicates the ongoing distribution process.
I am waiting for the Bitmex funding rate's green bar to go higher, which could signal the potential bullish sentiment.
Backwardation suggests that investors still believe that BTC price will keep going down. Again, bummer here.
That being said, it is worth noting that all these sentiment indicators are lagging so it is better to check them again next week if the price momentum continues.
I will pay attention to the open interest and volatility and be wary of any big orders in the orderbook in the upcoming days.
IF BTC can manage to attack 8.8k to 9.2k and consolidate around that price range, then the bull reversal might be on the horizon. If the price stalls around 8k, it could be a good time to buy on the pullback.
Oh! Iran just fired missiles to US bases! If you buy into the notion that BTC is the digital gold and is uncorrelated to the stock market (we could use more evidence on the correlation), then that is one more reason to be bullish on BTC.
Liquidando a todo el mundo (Swing: Long & Short)Bajo el concepto de que Bitmex empuja el mercado en función de que pierdan la mayor cantidad de jugadores, para de esta forma aprovechar la liquidez.
Los rectángulos rojos son pools de liquidez.
Entre hoy y mañana debiera subir el precio hasta los 8916-9072 para luego bajar bajar y bajar.
Short: Un buen punto de entrada para el Short es arriba de los 8914.
Long: Se puede operar el Long también, pero es un poco más peligroso. Un buen punto de entrada es abajo de los 8649. Yo entre anoche en 8522.
Recuerden, primero Long, luego Short.
En caso de que el mercado se lateralice más de 24 hs este pronóstico puede cambiar (ya que van cambiando los pools de liquidez).
