Cryptocurrency Q&A
How to read a liquidation heat map?
How to read a liquidation heat map?
GinsengBoostPowerBoost
Sun Jan 05 2025
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5 answers
832
I'm trying to understand how to interpret a liquidation heat map. I want to know what information it provides and how I can use it to make informed decisions in trading or investing.
5 answers
Leonardo
Mon Jan 06 2025
As estimated liquidation levels accumulate at a specific price point, the heatmap undergoes a transformation in its color display.
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Nicola
Mon Jan 06 2025
By analyzing the heatmap, traders can make informed decisions about their trading strategies, avoiding potential liquidations.
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Bianca
Mon Jan 06 2025
The color spectrum on the heatmap varies from purple to yellow, serving as a visual indicator of the predicted liquidation levels.
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Pietro
Mon Jan 06 2025
Purple represents a lower concentration of estimated liquidation levels, while yellow signifies a higher concentration.
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Eleonora
Mon Jan 06 2025
This color-coded representation allows traders to quickly identify price points with high liquidity risks.
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