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πŸ“ŠLIQ PROFILE Indicator Guide

Master the liquidation profile indicator to identify key price levels and trading opportunities

What is LIQ PROFILE?

The LIQ PROFILE is a vertical bar indicator in the middle of your dashboard that shows the exact same liquidation zones as the candlestick chart on the leftβ€”just in a compact vertical format. The LIQ HEATMAP on the right shows those same zones again with detailed density information. All three visualizations show identical data in different formats.

Key characteristics:

πŸ’‘ The Three Visualizations:

The white stripe on the profile = current price level. RED and GREEN bars are scattered throughout at different price levels. Taller bars = more positions at that level = stronger zone.

Reading the Bars: Green vs Red

The LIQ PROFILE uses two colors to distinguish between different types of liquidations:

Color Type Current Status Price Implication
🟒 GREEN Long Liquidations Long traders at risk of liquidation at this price level If price reaches here, longs are forced to SELL
πŸ”΄ RED Short Liquidations Short traders at risk of liquidation at this price level If price reaches here, shorts are forced to BUY/COVER

🟒 GREEN Bars = Long Liquidation Zones

πŸ”΄ RED Bars = Short Liquidation Zones

Bar Height: Understanding Volume Density

The height and thickness of each bar directly corresponds to the volume of OPEN POSITIONS currently at that price level (these positions are at risk of liquidation if price reaches them):

Interpreting Bar Height

Bar Height Example: Current Price: $78,500 $ (Price) | $79,500 | β–ˆ (Tall RED bar) ← Many short positions at risk here | β–ˆ | β–ˆ $79,000 | β–“ (Medium RED bar) | $78,500 | ─ ← Current Price (NOW) | $78,000 | β–’ (Medium GREEN bar) ← Some long positions at risk here | β–’ $77,500 | β–ˆ (Tall GREEN bar) ← Many long positions at risk here | β–ˆ | β–ˆ
πŸ“Š Reading the Example:
🎯 How Band Aggregation Works (Important):

The bar at each price level represents ALL positions that fall within that band's range, not individual prices. For example:

Key point: Positions within a band bucket are aggregated for visualization. They keep their exact prices in NEAR LIQUIDATION. As market prices change, band sizes update daily to maintain consistent granularity.

Reading Price Levels

The LIQ PROFILE shows bar heights (volume), but the clearest way to see price levels is through the LIQ MAP TAB:

πŸ“ Finding Price Levels: If the LIQ PROFILE bars don't show clear price labels, zoom out or look at the LIQ HEATMAP center chart instead. The heatmap clearly displays price levels as horizontal rows. Each bar in the profile corresponds to a price level shown in the heatmap.

What These Zones Tell You

1. Zone Concentration

The tallest bars on the LIQ PROFILE show where the most positions are concentrated:

2. What Happens at Each Zone

3. Cascade Zones

When you see multiple tall bars clustered together, this indicates concentrated positions stacked at nearby price levels:

πŸ“Š Educational Use: LIQ PROFILE zones help you understand where current positions are concentrated and what pressure points exist on the market. Use this information to understand market structure and make informed decisions based on your own analysis.

Quick Reference Card

🟒 GREEN BARS (Long Liquidation Zones)

Type: Long Positions at Risk of Liquidation Meaning: If price reaches this level, longs forced to SELL Location: Scattered at various price levels throughout indicator Zone Type: Selling Pressure (liquidations create selling)

πŸ”΄ RED BARS (Short Liquidation Zones)

Type: Short Positions at Risk of Liquidation Meaning: If price reaches this level, shorts forced to BUY/COVER Location: Scattered at various price levels throughout indicator Zone Type: Buying Pressure (liquidations create buying)

πŸ“Š BAR HEIGHT = CURRENT OPEN POSITION VOLUME AT THAT PRICE LEVEL

Tall/thick bars = High position volume (strong concentration) Short/thin bars = Low position volume (weak concentration) Clustered bars together = Cascade zone (positions trigger in sequence) Gaps between bars = Clean price (fewer positions)

βšͺ WHITE STRIPE = CURRENT PRICE REFERENCE

Just a marker showing where current price is on the chart Zones above, below, and around it are all relevant for analysis

Important Disclaimer

This is NOT financial advice. LIQ PROFILE provides market information only. It shows where liquidations could occur based on current position data, but does NOT predict price direction or recommend any trading action.

Liquidation zones are complex market dynamics. Many factors affect price movement beyond just position concentration. Always:

πŸ“Œ Remember: LIQ PROFILE shows CURRENT REAL-TIME OPEN POSITIONS rounded into price bands (bands are for visualization only). These are positions currently at risk of liquidation if price reaches those levels. Use this data to identify where liquidations are LIKELY to happen if price moves there. Always manage your risk and use multiple confirmation methods before trading.