Some people asked how to read the liquidation map ๐ง
(ok, one guy actually did โ but letโs pretend itโs a trend ๐ )
My reply turned out too detailed for a comment โ so I decided to make a post instead.
I use liquidation maps from Coinglass, and hereโs a short explanation of how they work ๐
When a position is opened, it automatically gets a liquidation price.
Clusters of these prices from many traders form bright bands on the liquidation map.
โจ The brighter the band โ the more potential liquidations there are.
These zones often act like magnets for price: when the market approaches them, mass liquidations and stop orders are triggered, creating strong volatility and momentum.
However, market makers rarely move price straight toward these clusters.
They prefer to build traps, collect volume, and strike when traders least expect it.
But one rule always holds true โ sooner or later, in one way or another, liquidity gets taken.
โ ๏ธ Still, this is not a guaranteed signal or an entry trigger.
A liquidation map shows where liquidity sits, not when or how it will be collected.
Always combine it with trend structure, open interest, funding rates, and market sentiment.
๐ฌ If you use Coinglass or other tools for liquidation analysis โ share your insights in the comments.
Iโd love to hear how you read these maps or combine them with your strategy ๐
