#save

📌 1 useful tool for long short trading

🔍 1. What is a Heatmap?
👉 This is a heat map showing the locations of large liquidity clusters – places where many stop loss, liquidation, or limit orders are waiting.
👉 The brighter the color = the higher the liquidity = the area is easily 'hunted' or the price is drawn to.

📊 2. How to read this chart
👉 vertical axis: price $BTC from ~76,000 to 92,000.
👉 horizontal axis: time – 5-minute chart, spanning the last 7 days.
👉 Red price line: the actual price chart of $BTC running through liquidity areas.
👉 Color bars: indicate liquidity density at specific price levels:
💜 Dark purple: very little liquidity
💚 Green → 💛 V


⛔ How to make money from this tool when #trade futures

✅ 1. Understand the nature: Heatmap = stoploss hunting map of sharks

Bright colored areas are where there are many SL orders, limit orders waiting, or areas easily liquidated.
Sharks will 'pull the price' to these areas to sweep the orders, then reverse.
👉 Your task: 'Go with the sharks – do not be the prey.'

🎯 2. Specific strategies when trading futures with heatmap

📌 Strategy 1: Liquidity sweep trading
Observe the high liquidity areas above or below the current price.
If the price moves to that area and then retracts strongly → that is a signal to enter the opposite order.

📌 Strategy 2: Follow the liquidity breakout
If the price breaks strongly through the liquidity area → enter an order in the breakout direction.
Use the breakout + pullback strategy for safe entry.

📌 Strategy 3: Do not enter the middle of the liquidity squeeze
When the price is between two bright clusters, do not enter an order → easy to get whipsawed.
Wait for the price to touch one of the two clusters before acting.

#trade