Liquidations Meter
By LuxAlgoNov 9, 2023
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 exactly 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 current closing price.
- 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 indicator
Get free access to this indicator on the platforms below.
TradingView
NinjaTrader
MetaTrader 4/5
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