Binance futures liquidations totaled about $2.91 million over the past hour. Longs accounted for 75.8%, with $MAGIC ($996,000) leading the way.
Let’s break this number down.
Widespread liquidations of long positions add selling pressure, while widespread liquidations of short positions add buying pressure. This is what causes cascading liquidations to amplify volatility.
The risk of leveraged trading is that even if you ultimately get the direction right, interim volatility may still wipe out your position first.
Understanding this indicator is about being less spooked by the numbers, not using it to pinpoint tops and bottoms.
#MAGIC
Just keeping a casual record. Make your own trading decisions.
Let’s break this number down.
Widespread liquidations of long positions add selling pressure, while widespread liquidations of short positions add buying pressure. This is what causes cascading liquidations to amplify volatility.
The risk of leveraged trading is that even if you ultimately get the direction right, interim volatility may still wipe out your position first.
Understanding this indicator is about being less spooked by the numbers, not using it to pinpoint tops and bottoms.
#MAGIC
Just keeping a casual record. Make your own trading decisions.