I'm trying to understand how to interpret a liquidation heatmap. I want to know what information it provides and how I can use it to make better trading decisions.
7 answers
Daniele
Thu Jan 02 2025
The heatmap displays estimated liquidation levels at various prices.
DigitalDynastyQueen
Thu Jan 02 2025
As these levels increase for a specific price, the colors on the heatmap alter accordingly.
Riccardo
Thu Jan 02 2025
The color spectrum on the heatmap varies from purple to yellow.
MoonlitCharm
Thu Jan 02 2025
Purple signifies a lower number of predicted liquidation levels.
Riccardo
Wed Jan 01 2025
Conversely, yellow indicates a high concentration of estimated liquidation levels.