Liquidations

Overview

The Liquidations Indicator is a tool used in market analysis to visualize the volume of liquidation orders in relation to the total volume of a trading period. It provides insights into the market's liquidation events, which occur when traders are unable to maintain the margin requirements for their leveraged positions.

Calculation

The Liquidations Indicator is calculated by comparing the volume of buying or selling liquidation orders to the total volume of the trading period.

Interpretation

The Liquidations Indicator is interpreted as follows:

• Buying liquidation volume indicates that shorts are being liquidated. This means that traders who were short have to market-long to close their position.

• Selling liquidation volume means that longs are being liquidated. This means that traders who were long have to market-short to close their position.

Indicator Triggers:

General indicator triggers can be executed: