Liquidation Volume Radar
With liquidation data, first look at who was forced out.
$UNI : Longs took heavier losses. Next, watch for buyers to step in and catch the price.
$PROM : Long positions accounted for most of the liquidations. The higher liquidations are as a share of trading volume, the more directly they affect price during that period.
$FLUX : Shorts were forced out in concentrated fashion. We can say a squeeze occurred, but shouldn’t describe it outright as the start of a trend.
When liquidation patterns diverge, watch how trading on each side recovers afterward; it’s not something that can be summed up in one sentence.
With liquidation data, first look at who was forced out.
$UNI : Longs took heavier losses. Next, watch for buyers to step in and catch the price.
$PROM : Long positions accounted for most of the liquidations. The higher liquidations are as a share of trading volume, the more directly they affect price during that period.
$FLUX : Shorts were forced out in concentrated fashion. We can say a squeeze occurred, but shouldn’t describe it outright as the start of a trend.
When liquidation patterns diverge, watch how trading on each side recovers afterward; it’s not something that can be summed up in one sentence.
