Liquidation Detector, Short and Long with Open Interest

The script analyzes three main pieces of data from each candle (or time bar): price, Open Interest (OI), and volume. It then uses that data to look for two distinct types of patterns and marks them on the chart for easy viewing.

CAN ONLY BE USED WITH STICKER BTC1! CME

Liquidation Detection:

What are you looking for? A sharp drop in Open Interest accompanied by a spike in volume.

What does it mean? This pattern indicates that a large number of positions (usually long) are being closed quickly, which can cause a sharp price drop. It's a signal of market capitulation that many traders use as a potential entry point.


Shorts Entry Detection:

What are you looking for? A price drop accompanied by an increase in Open Interest and a spike in volume.

What does it mean? This pattern shows that "new money" is entering the market to open short positions. It confirms a downtrend and suggests that the price drop has real strength behind it.

Marker: A purple triangle labeled "Shorts."