Just a quick note: in the past hour, Binance futures liquidations totaled about $2.91 million, with long positions accounting for 75.8%. The largest liquidation was $MAGIC ($996,000).
People often ask how to interpret liquidation data, so here’s my take.
Long liquidations refer to leveraged long positions being forcibly closed, usually when prices move down; short liquidations are the opposite, and usually occur during rallies.
When you see a large liquidation event, instead of guessing the next move, it’s better to first check how far your own position is from the liquidation price.
Sizing positions based on stop-loss distance is far more reliable than entering trades on a whim.
#MAGIC
Just a record of the market; please make your own decisions when trading.
People often ask how to interpret liquidation data, so here’s my take.
Long liquidations refer to leveraged long positions being forcibly closed, usually when prices move down; short liquidations are the opposite, and usually occur during rallies.
When you see a large liquidation event, instead of guessing the next move, it’s better to first check how far your own position is from the liquidation price.
Sizing positions based on stop-loss distance is far more reliable than entering trades on a whim.
#MAGIC
Just a record of the market; please make your own decisions when trading.