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πLIQ 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 leftβjust 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:
- Vertical bar indicator displaying liquidation zones at various price levels
- GREEN bars = Long liquidation zones (positions at risk of liquidation)
- RED bars = Short liquidation zones (positions at risk of liquidation)
- White horizontal stripe = Current price marker (reference point on the chart)
- Bar height = Volume/concentration of positions at each price level
- Positions are rounded into bands for visualization (band sizes = 1% of current market price, dynamically
updated daily)
- Same zones appear on: chart (left, candlestick view) β profile (middle, vertical bars) β heatmap (right,
horizontal density detail)
- Available to ALL tiers (including Starter)
π‘ The Three Visualizations:
- Chart (LEFT): Candlestick chart showing price action with zones overlaid
- LIQ PROFILE (MIDDLE): Compact vertical bar representation of the same zones
- LIQ HEATMAP (RIGHT): Detailed horizontal view showing density/concentration with
sideways bars
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 |
| π’ GREEN |
Long Liquidations |
Long traders at risk of liquidation at this price level |
If price reaches here, longs are forced to SELL |
| π΄ RED |
Short Liquidations |
Short traders at risk of liquidation at this price level |
If price reaches here, shorts are forced to BUY/COVER |
π’ GREEN Bars = Long Liquidation Zones
- GREEN bars represent long liquidation zones β areas where long positions are at risk of
liquidation
- Scattered throughout the indicator at different price levels (above, below, and around current price)
- If price reaches a GREEN bar's price level, those long positions liquidate (forced to sell)
- Creates SELLING PRESSURE β when price reaches these zones, concentrated long positions liquidate and sell, potentially pushing price lower
- Match these with the chart: Look at the chart on the left to see WHERE on the price
history these zones appear
π΄ RED Bars = Short Liquidation Zones
- RED bars represent short liquidation zones β areas where short positions are at risk of
liquidation
- Scattered throughout the indicator at different price levels (above, below, and around current price)
- If price reaches a RED bar's price level, those short positions liquidate (forced to buy/cover)
- Creates BUYING PRESSURE β when price reaches these zones, concentrated short positions liquidate and buy/cover, potentially pushing price higher
- Match these with the chart: Look at the chart on the left to see WHERE on the price
history these zones appear
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
- Tall/Thick bars = High position volume at this price = Strong pressure zone (if price
reaches here, expect many positions to liquidate)
- Short/Thin bars = Low position volume at this price = Weak zone (fewer positions at
risk)
- Multiple bars stacked together = Clustered positions = Very strong zone (cascade of
liquidations likely if price breaks through)
- Gaps between bars = Clean price levels with few positions = Less likely to cascade
Bar Height Example:
Current Price: $78,500
$ (Price)
|
$79,500 | β (Tall RED bar) β Many short positions at risk here
| β
| β
$79,000 | β (Medium RED bar)
|
$78,500 | β β Current Price (NOW)
|
$78,000 | β (Medium GREEN bar) β Some long positions at risk here
| β
$77,500 | β (Tall GREEN bar) β Many long positions at risk here
| β
| β
π Reading the Example:
- Tall GREEN bar at $77,500 = High concentration of long positions (many traders have longs at risk
here)
- Tall RED bar at $79,500 = High concentration of short positions (many traders have shorts at risk
here)
- If price falls to $77,500, those many longs will liquidate (forced to sell). If price rises to
$79,500, those many shorts will liquidate (forced to buy).
π― 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:
- BTC price: $78,612 β Band size: $786.12 (1% of price)
- Individual positions in NEAR LIQUIDATION: $78,564, $78,576, $78,588 (exact prices)
- LIQ PROFILE bar: All three positions fall within the SAME $786.12 band range
- Result: ONE bar appears showing combined USD volume of all 3 positions
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:
- LIQ HEATMAP: Shows price levels horizontally with zones clearly labeled. Zones spike
sideways over time as positions enter/exit.
- LIQ PROFILE: Shows the same positions as vertical bars on the right. Use bar HEIGHT to
see concentration at each level.
- Current Price: Typically marked with a horizontal line or price indicator. GREEN zones
below = longs, RED zones above = shorts
π 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:
- GREEN tall bars = High concentration of longs at risk of liquidation at
this price level
- RED tall bars = High concentration of shorts at risk of liquidation at
this price level
- Bar height = Position volume: Taller bars = more positions at that price = stronger
concentration
2. What Happens at Each Zone
- GREEN zones: If price reaches a GREEN bar's price level, those longs are forced to SELL
(liquidation). This creates selling pressure.
- RED zones: If price reaches a RED bar's price level, those shorts are forced to
BUY/COVER (liquidation). This creates buying pressure.
3. Cascade Zones
When you see multiple tall bars clustered together, this indicates concentrated positions
stacked at nearby price levels:
- If price breaks through one level, the next clustered positions will cascade into liquidation quickly
- When many positions liquidate in succession, this creates high volatility and sharp price moves
- Cascade zones are areas of high liquidation risk and price volatility
π 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
π’ 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)
π΄ 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)
π 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)
βͺ 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:
- Do your own research and analysis
- Manage your risk carefully
- Understand what you're trading before entering positions
- Consult with a financial advisor if needed
π 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.