# Liquidations Meter Liquidations Meter is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. The Liquidations Meter grades the latest bar's momentum by estimating the leverage tiers of longs and shorts liquidated within it, separating bull from bear pressure and hinting at exhaustion when even low-leverage positions get hit. A built-in calculator projects approximate liquidation prices for any entry and leverage, backed by a bar-statistics dashboard. - Indicator in the LuxAlgo Library, by LuxAlgo, published Nov 9, 2023. - Access: free. - Concepts: [Liquidation Clusters](https://www.luxalgo.com/library/concept/liquidation-clusters/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn2xqy0042vhsgya1pdcik - Page: https://www.luxalgo.com/library/indicator/liquidations-meter/ **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](https://www.luxalgo.com/library/concept/liquidation-clusters/) 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 ### How is the liquidation price calculated? Divide 100 by the leverage ratio to get the liquidation distance in percent: at 20x that is 5% from entry. Longs liquidate below entry, at entry × (1 − 1/leverage), and shorts above it, at entry × (1 + 1/leverage). It assumes an isolated margin on a single position and ignores fees and position size, which don't shift the level itself. ### What's the difference between this and Liquidation Estimates (Real-Time)? The meter interrogates one bar at a time, grading how deep its move cut into the leverage spectrum, and adds a calculator for your own positions. [Liquidation Estimates (Real-Time)](https://www.luxalgo.com/library/indicator/liquidation-estimates-real-time/) instead plots estimated long and short liquidation flow continuously, bar after bar. ### Is the Liquidations Meter free? It is. Grab it at no cost from the LuxAlgo Library. It also runs in Quant, our coding agent, directly from this page. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [Liquidation Levels](https://www.luxalgo.com/library/indicator/liquidation-levels/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/liquidation-levels.md - [Crypto Liquidation Heatmap](https://www.luxalgo.com/library/indicator/crypto-liquidation-heatmap/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/crypto-liquidation-heatmap.md - [Liquidation Estimates (Real-Time)](https://www.luxalgo.com/library/indicator/liquidation-estimates-real-time/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/liquidation-estimates-real-time.md - [Volume Bubbles & Liquidity Heatmap](https://www.luxalgo.com/library/indicator/volume-bubbles-liquidity-heatmap/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/volume-bubbles-liquidity-heatmap.md - [Bitcoin Power Law Clock](https://www.luxalgo.com/library/indicator/bitcoin-power-law-clock/) (Crypto Cycle Models): markdown at https://www.luxalgo.com/library/indicator/bitcoin-power-law-clock.md - [Bitcoin Power Law](https://www.luxalgo.com/library/indicator/bitcoin-power-law/) (Crypto Cycle Models): markdown at https://www.luxalgo.com/library/indicator/bitcoin-power-law.md - [Open Interest Inflows & Outflows](https://www.luxalgo.com/library/indicator/open-interest-inflows-outflows/) (Open Interest): markdown at https://www.luxalgo.com/library/indicator/open-interest-inflows-outflows.md - [Open Interest Chart](https://www.luxalgo.com/library/indicator/open-interest-chart/) (Open Interest): markdown at https://www.luxalgo.com/library/indicator/open-interest-chart.md --- Source: https://www.luxalgo.com/library/indicator/liquidations-meter/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/