How to use data on Get Liquidated in the crypto world? A blood and tears practical manual for old suckers.

Brothers, those who play contracts, who hasn't been Get Liquidated a few times? That feeling is quite something! But do you know? The data on Get Liquidated across the whole network, if used well, can really save your life, even help you pick up bleeding chips. Today, no fluff, pure practical sharing of how I use this data, all lessons learned with real money.

1. Get Liquidated data is not hindsight; it is a thermometer for market sentiment.
1. Look for reversal signals, just focus on it!
When the market is skyrocketing, if you suddenly see a sharp increase in the liquidation volume of short positions (a bunch of people being forced to close their short positions, which is equivalent to buying in disguise), don't rush to chase! This is often the last carnival of the bulls, the selling pressure is about to run out, and a pullback may be right around the corner. Conversely, if there are numerous liquidations of long positions during a crash (liquidation equals passive selling), oh dear, the short-term bottom may be near. I've seen it too many times, with BTC liquidating over a hundred million dollars in long positions in just one hour, and shortly after, it rebounded. Truly bloody chips.

2. Predict key price levels, see "Liquidation Heat Map"
This thing is amazing! It tells you which price levels are stacked with a bunch of "bombs" waiting to be liquidated. For example, if the ETH price drops to around $3000, the heatmap shows that there are a ton of long liquidation points densely packed around $2950. At this point, be careful; if the price drops to this area, it can easily trigger a chain reaction of liquidations (a stampede), possibly breaking through instantly. But! If it breaks through quickly and the volume doesn't keep up, it often presents a short-term opportunity to buy the dip (the big players love to do this, first liquidate your position and then pump the price).

3. Measure how crazy/how cowardly the market is
More than one billion or even tens of billions of dollars liquidated across the entire network in a day? Don't doubt it, this is definitely an extreme market condition, either panic to the extreme or greed to madness. At this time, don't be headstrong, take it easy. Look at the liquidation ratio: if more than 70% of the liquidated positions are short positions, it indicates that the market is too damn optimistic, and everyone is shouting "the bull is back," so you should be alert to the risk of a pullback. Conversely, if the majority of liquidated positions are long positions, then the panic sentiment might be a bit excessive.
2. How to use it in practice? A step-by-step guide for you.
1. Find continuation/exhaustion in the trend
The market is rising, and if the liquidation volume of short positions continues to be higher than that of long positions, it indicates that the bears are still resisting and getting liquidated repeatedly, which means the trend could continue for a while. But if, while rising, the liquidation volume of long positions suddenly surges? Be careful, brother, it indicates that the bulls can no longer hold on, and the trend might be coming to an end.
2. Catch reversals and pick up bargains (high risk high reward)
My usual strategy: Keep an eye on the real-time liquidation chart (for example, available on AICoin) + observe the liquidation heat map + combine with key indicators (like RSI overbought and oversold). For instance: SOL has been in a continuous downtrend, and it looks like it's about to hit the dense area of long position liquidations shown on the heat map (for example, $120), while the RSI drops below 30. At that moment, I will stay alert and place limit buy orders at lower points in batches (remember, it's in batches!). I'm betting that after this wave of panic selling, it will rebound. Key point: Make sure to wait until that concentrated liquidation happens before considering your move, don't try to catch the falling knife early!
3. Life preservation is crucial! This is how to manage risk.
Set a stop loss? Don't be foolish and set your stop loss at those round numbers (like Bitcoin at $60k, $50k) or at places where liquidation orders are clustered on the heat map! The market makers love to target these spots to specifically "hunt stop losses." Keep your stop loss hidden farther away, or use a trailing stop loss. How much leverage to use? Look at the liquidation volume! If the liquidation volume of a particular coin (like a hot coin during altcoin season) suddenly surges to more than three times its usual average, it indicates extreme volatility. At this point, either don't play, or significantly reduce your leverage! Don’t think you are the chosen one; the market specializes in punishing all kinds of arrogance.

4. Brothers who play with quantification
Platforms like CoinGlass have APIs that can provide historical Get Liquidated data. You can get some indicators, for example:
Liquidation Volume Ratio = Current Liquidation Volume / Average Liquidation Volume over the past 30 days. When this ratio spikes to 2.5 or even above 3, it indicates extreme market sentiment, often serving as a good mean reversion trading signal (betting that the sentiment will calm down).
IV. Heartfelt Words from Old Suckers (Lessons Learned the Hard Way)
1. The data is lagging! The liquidation data tells you "what has already happened", not "what is going to happen". You must consider the real-time prices and the depth of the order book! Don't rush in mindlessly just because you see liquidation.
2. Be careful of fake breakouts! The manipulators are very cunning and often deliberately push the price into the Get Liquidated dense area, triggering a bunch of stop losses and Get Liquidated (creating panic or greed), and then immediately reverse direction. How to distinguish between true and false? Look at the trading volume! A true breakout usually has increased volume, while a fake breakout often has decreased volume or very weak volume. If you see the price quickly break through the Get Liquidated area and then quickly pull back/pull down? It's 80% likely a false move.
3. Don't just focus on Get Liquidated data! It is an important piece of the puzzle, but not the whole picture. It must be considered together:
Funding Rate: If there are many Get Liquidated cases and the funding rate is still negative (shorts are paying to hold positions), then the probability of a reversal is higher (shorts are also about to give in).
Position: After getting liquidated, does the position volume drop rapidly (panic exit) or stabilize or even rebound (with funds supporting)? The implications are completely different.
Spot trading volume: The volatility triggered by Get Liquidated, is there a real buy and sell order following in the spot market? Playing with just the contract can easily lead to a "fake market".
Summary: Get Liquidated data is essentially a recording device for the "market flowing with blood." Often, after extreme panic and mass Get Liquidated events, hidden opportunities await; while during times of extreme greed and when shorts are being slaughtered, risks are knocking at the door. Beginners are advised to start feeling the market pulse with CoinAnk's alerts; short-term players can use AICoin's Get Liquidated charts to find reversal points; for those developing strategies, CoinGlass's API is a treasure trove.