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Liquidations Meter

By LuxAlgoNov 9, 2023

Liquidations Meter is an indicator on Vela, our next-generation charting platform, written in Pine Script®.

Static chart image

Liquidations Meter grades every bar by the leverage it destroyed. The meter works out the highest possible leverage values of long and short positions that may have been liquidated during the last chart bar, turning forced liquidations into a bar-by-bar gauge of momentum and bull-versus-bear strength. A liquidation price calculator and a bar-statistics dashboard round out the toolkit.

How to Trade the Liquidations Meter?

  • Momentum gauge: the meter shows how far into the leverage spectrum the last bar's move could have liquidated positions, a direct read on its force.
  • Exhaustion cue: when even low-leveraged positions are being liquidated, the move is running hot; watch for potential reversal or exhaustion.
  • Risk calculator: enter an entry price and leverage to see approximately where a long or short would be liquidated, the level to protect with stops.
  • Portfolio triage: a quick way to see which of several open trades sits closest to its liquidation point.

The dashboard adds bar statistics, measuring activity, volatility, and potential liquidations over the most recent chart bar.

Liquidations Meter Settings

  • Base Price: the reference price used in the meter's calculations.
  • Liquidation Price Calculator: toggles the calculator; its working assumptions are detailed in tooltips.
  • Entry Price (default 0): the entry used by the calculator. Left at 0, it takes the selected Base Price (open by default).
  • Leverage: the leverage ratio applied to the calculation.
  • Show Calculated Liquidation Prices on the Chart: plots the calculator's output on the chart.
  • Show Bar Statistics: toggles the latest-bar dashboard summary.
  • Display inputs cover text sizes, the meter's offset, and dashboard/calculator placement.

Frequently Asked Questions

Free to use

Run it on Vela. Go further with a paid plan.

  • Up to 500 Custom Alerts, with webhook automation
  • Up to 10× the chart history of Free
  • Orderflow lookback up to full history
  • More Quant usage to customize it, plus extra usage when you need it
  • Futures data alongside crypto, stocks, forex and commodities
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Also works on

TradingView
NinjaTrader
Original indicatorBuilt in-house by LuxAlgo

Run it on Vela. Make it yours with Quant.

Open this indicator free on Vela, our next-generation charting platform. Then ask Quant, our coding agent built into Vela, to retune it or turn it into a backtested strategy of your own.