Leveraged Liquidation Zones

1 thg 7

OVERVIEW
This indicator estimates potential liquidation zones based on leveraged positions (25x, 50x, 75x, 100x). It visually displays upper and lower bounds for each leverage tier, allowing traders to infer areas where the market might be seeking liquidity.

CONCEPTS
In leveraged markets, especially crypto derivatives, price often moves towards zones of high liquidation potential — areas where traders using high leverage are likely to be stopped out. These zones represent concentrations of liquidity that can serve as targets for price movement.

This script models simplified liquidation areas by calculating the price range within which positions using specific leverage levels would be at risk, assuming no maintenance margin and using the previous candle close as a reference.

FEATURES

• Visual zones for 25x, 50x, 75x, and 100x leverage levels.
  
• Customizable visibility and colors for each leverage tier.
  
• Real-time zone calculation based on the previous candle close.
  
• Simple and clean design to overlay directly on price action.
  

USAGE
Use this tool to identify areas of liquidity accumulation or potential price magnet zones. High-leverage liquidations often lead to volatile movements when triggered, so tracking these zones can help anticipate breakout or reversal behavior.

You can toggle individual leverage levels via the settings panel, and adjust color transparency to suit your chart theme. This tool is most effective when combined with volume spikes, order book analysis, or high-frequency behavior.

12 thg 7

Phát hành các Ghi chú

OVERVIEW
This indicator estimates potential liquidation zones based on leveraged positions (25x, 50x, 75x, 100x). It visually displays upper and lower bounds for each leverage tier, allowing traders to infer areas where the market might be seeking liquidity.

CONCEPTS
In leveraged markets, especially crypto derivatives, price often moves towards zones of high liquidation potential — areas where traders using high leverage are likely to be stopped out. These zones represent concentrations of liquidity that can serve as targets for price movement.

This script models simplified liquidation areas by calculating the price range within which positions using specific leverage levels would be at risk, assuming no maintenance margin and using the previous candle close as a reference.

FEATURES

• Visual zones for 25x, 50x, 75x, and 100x leverage levels.
  
• Customizable visibility and colors for each leverage tier.
  
• Real-time zone calculation based on the previous candle close.
  
• Simple and clean design to overlay directly on price action.
  

USAGE
Use this tool to identify areas of liquidity accumulation or potential price magnet zones. High-leverage liquidations often lead to volatile movements when triggered, so tracking these zones can help anticipate breakout or reversal behavior.

You can toggle individual leverage levels via the settings panel, and adjust color transparency to suit your chart theme. This tool is most effective when combined with volume spikes, order book analysis, or high-frequency behavior.