Liquidation Map Strategy

Logical Explanation: The futures market is a zero-sum game. When a large number of high-leverage longs (or shorts) gather at a certain price point, the price is often attracted like a magnet, triggering "explosive" liquidations of these positions to provide liquidity.

* Detailed Operations:

* Tool Assistance: Use third-party liquidation map tools.

* Identify Dense Areas: Observe the liquidation histogram to find regions with the most concentrated long or short liquidations.

* Positioning:

* If there is a huge short liquidation zone above: the price is likely to experience a rapid surge "sweeping out shorts."

* If there is a dense long liquidation zone below: the price may dip sharply to "pick up" traders or "clear leverage."

* Execution: Place a "left-side order" slightly behind the dense liquidation zone.

Case Analysis:

The liquidation map shows that BTC has a $500 million long stop-loss level around 64,500.

* Operation: Instead of buying at 65,000, place an order at 64,300.

* Result: The price quickly breaks through 64,500, triggering a chain of liquidations. After touching 64,300 precisely, it rapidly reverses. You get filled at the lowest price of the entire move.