I just realized that one of the most overlooked tools that sharks and market makers always use is the liquidation heatmap. It's simple — this map shows where a lot of money is stuck waiting to be liquidated, and the price will always move toward those areas.



The way to read the heatmap is quite easy. The dark purple and blue areas are where liquidity is low, and the price doesn't care much about them. But when you see bright orange and yellow, that's a big liquidity pool — where the price loves to move to "eat" the stuck orders. Remember that the price doesn't move based on technical analysis like most people think; it moves based on MONEY. Wherever the money is, that's where the price runs.

A simple example: below the current price, there are many long orders stuck. If the price gets pushed down, all those longs will be liquidated en masse. Similarly, if there are many shorts above, a slight push up can trigger a short squeeze. Market makers know this well, so they always move the price to the area where "most liquidations happen." That’s why you need to monitor the liquidation heatmap.

When you open a chart and look at the heatmap, find the brightest area. Is it below or above the current price? If it's below, the price is likely to be pushed down. If it's above, the price is likely to be pulled up. This will give you clues about the market's upcoming direction.

An important note: the liquidation heatmap does not give you exact entry points. It only shows the direction the price is likely to move. For entry points, you need to combine it with support and resistance levels and price action. Also, liquidity pools can change quickly, so you should update the heatmap every 15-30 minutes.

Golden rule: never trade against large liquidity. Your chances of losing are almost 90%. Instead, go long when large liquidations are above the price, and go short when they are below. When you understand how to read the liquidation heatmap and use it correctly, you'll avoid constant stop-loss hits and be able to enter trades aligned with the market's true flow of money.
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