Liquidation Estimates (Real-Time)
By LuxAlgoOct 31, 2023
Liquidation Estimates (Real-Time) puts a number on the market's forced exits as they happen, estimating long and short liquidations on every bar and every timeframe. Exchange liquidation records are not part of standard chart data, so the indicator infers them from traded volume and the underlying price movement, a chart-native approximation of who is being flushed out, and when.
How to Trade the Liquidation Estimates (Real-Time)?
- Green bars — long liquidations: printed when a sudden drop in price forces leveraged bulls out of their positions.
- Red bars — short liquidations: printed when a sharp rally squeezes leveraged bears into forced closes.
- Dominance view: plots the difference between long and short liquidations, showing which side the market is currently punishing.
- Total and cumulative views: the total sums both sides into one consolidated activity reading, while the cumulative view accumulates the long/short difference to help confirm trend strength and direction.
Waves of one-sided liquidations often accompany sentiment extremes, which is why traders watch them when mapping potential support and resistance, spotting trend reversals, and timing entries and exits.
Liquidation Estimates (Real-Time) Settings
- Mode: selects how the liquidations chart is displayed: the dominance, total, and cumulative representations described above.
- Longs Reference Price: the base price used to calculate long liquidations.
- Shorts Reference Price: the base price used to calculate short liquidations.
Frequently Asked Questions
Free on Vela
Run it on Vela. Go further with a paid plan.
- Up to 500 strategy alerts, with webhook automation
- Up to 10× the chart history of Free
- Orderflow lookback up to full history
- Up to 100,000 monthly credits for Quant to customize it
- Futures data alongside crypto, stocks, forex and commodities
Also works on
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