The main premise of this indicator is to identify when large cryptocurrency futures positions are opened, and then plot the liquidation levels of those positions. Market makers know this data and tend to push price towards these levels, as there is guaranteed liquidity at or approaching those levels.
Remember, we want to buy when others are forced to sell, not when they want to sell, and vice versa. Whales want to position, but need to do so in areas of larger liquidity, as they want to minimize slippage and detection as much as possible.
This indicator is very useful during times of chop, when the market is taking liquidity anywhere it exists as whales are forcing retail players out of their positions.
This indicator will also plot where positions with a total value in excess of the user-defined threshold are opened or closed, so you are able to better gauge how market participants are reacting to price levels.
Commonly used leverage levels are 100x, 50x, and 25x, but can be adjusted by the user depending on what they are noticing is attracting price levels.
This indicator is recommended for use on the 1 minute chart of the Binance BTCUSD perpetual contract pair. This will allow for as much precision as possible for the majority of users. Note: The only supported coin at this point is BTC - other coins to follow soon.
SUMMARY 1) View liquidation levels of large positions opened 2) View exact moments where large positions are opened or closed 3) Gauge available liquidity to upside or downside to better assist in determining longer term reversal points
COMING SOON 1) Additional coins 2) VPVR inspired vertical histogram or other visualization tool summarizing total available liquidity at specific price level 3) Total delta of available long and short liquidity 4) Push notifications when price takes liquidity 5) Requests as outlined in the comments
This indicator was inspired by the Hyblock Capital liquidation levels and offers an improvement upon the popular existing Liquidation Levels indicator by mlapplications.
Notes de version
⋅
Performance updates
Notes de version
⋅
SUNSETTING - Locking position liquidation values at 5m USD for BTCUSD pairs only - Indicator will remain up and functional, but future upgraded versions will continue to be optimized elsewhere. Please DM for full access.
What a great job my friend! The information in this indicator is VERY useful!
I have one suggestion: Could you add up the total volume of the opened positions at one price level and somehow make the bars more tick/less tick according to total, in order to differentiate the "weight" of each liquidation level?
I also have a couple of questions:
1. How do you know if a trade is an opened position or a closed position? 2. How do you know if a trade is Short or Long? I know the Binance API returns the recent trade list, but it doesn't include the SIDE (long vs short) 3. And finally, how do you put this information in Pine?
Great idea regarding the weight of open positions. I've been trying to determine the best way to visualize this on the indicator. I may need to build a separate indicator and just require the suite of indicators in order to maximize the information displayed.
To answer your questions: 1. When open interest increases, a position (long or short) is added. When OI decreases, a position (long or short) is closed. 2. We don't unfortunately. Specific position direction isn't natively available with Pine script sourced data. We can confidently assume however that positions in both direction may have been opened, and looking at the specific candle wicks can help you assume which positions may have outweighed the others. 3. The code to this indicator itself is proprietary information. As mentioned in the answer to your question 2, it's by no means perfect, but in order to get much more detailed information, you need to be the exchange itself or pay for exchange data.
AtlasMaster
⋅
@trader_LG, thanks very much for the detailed answer!
kaztrader
⋅
@AtlasMaster, I trade forex and crypro. Best indicator of open position is long candle or impulse or wick as author mentioned/ Let's recall how most people trade/ When they see big move they wanna catch the move/ Don't miss the train as they say/ So when I get long impulse up I know crowd will be buying nt to miss the move. An vise versa/ Enjoy/ If you add arrows in settings of indicator/ you will see mostly people are opening positions at edge of move/ once there is voulme entered price reverses
edgargameacc
⋅
The fact that you are publishing this for free... You are awesome.
Hi bro or sis! Thank you for great indicator! could you add alert for openened positions? When they appear on chart to give alert/ Thank you in advance great job
michaelsnugent
⋅
Love this indicator! Could you please explain how to set alerts on the mobile app? Thanks.
I have one suggestion: Could you add up the total volume of the opened positions at one price level and somehow make the bars more tick/less tick according to total, in order to differentiate the "weight" of each liquidation level?
I also have a couple of questions:
1. How do you know if a trade is an opened position or a closed position?
2. How do you know if a trade is Short or Long? I know the Binance API returns the recent trade list, but it doesn't include the SIDE (long vs short)
3. And finally, how do you put this information in Pine?
Thanks!