Advanced Liquidations Heatmap v4 [HG]

1 nov 2023

Description:

This indicator examines price movements, volume, support, and resistance levels to pinpoint potential trading opportunities. It identifies large, volatile moves with substantial activity in specific zones on the chart, which the market tends to revisit due to the high transaction volume in these areas. The primary purpose of this indicator is to highlight these high-probability areas where the market is likely to return.

Leverage Liquidations Feature:

This indicator incorporates a feature that displays arbitrary liquidation levels, corresponding to various leverage settings common among market participants. Users need to analyze the market and select appropriate leverage settings based on their insights.



Transparency Feature:

The indicator also includes a feature that modulates the transparency of the displayed areas according to their significance, enhancing the visual representation of market activity.



Color Modulation Feature:

This feature modifies the color of the displayed areas depending on their importance.



Using the indicator:

We recommend using this indicator to trade towards and away from significant areas, and to look for reversals when these zones are revisited. Although trading offers no certainties, only probabilities, the significant candles on the chart denote high-probability areas the market frequently revisits. Additionally, zones recovered between 50% - 100% indicate high-probability points where the market might reverse its direction. The probability of a market direction change escalates as more significant areas are recovered sequentially. While there's no strict rule for when these areas are recovered, observing candle colors (green, blue, red, purple) can assist in assessing the velocity of a move to or from a zone. For more effective use of this indicator, determine a trend using other preferred indicators or even a basic EMA. Dedicate time to understanding how these zones are revisited for each specific asset.

Strong Move Up:


Strong Move Down:


Area Recovered Partially:


Significant Areas Are Recovered Sequentially:


Here's how to use the "Leverage Liquidations Feature":

• Analyze market leverage tendencies: It's essential for users to undertake their own research into the common leverage settings utilized by market participants for a specific asset. By doing this, they can input these settings into the indicator to gain a better comprehension of potential price movements. Some sensible defaults are included in the default settings.
  
• Visualize the liquidation levels on the chart: After the user has identified the prevalent leverage settings, the indicator will project the corresponding liquidation levels on the chart. These levels signify the points at which numerous leveraged positions would face liquidation, considering the current market price. This data can be instrumental in setting stop losses, establishing profit targets, and predicting potential market movements due to mass liquidations.
  

Liquidations Levels On BTC 25x + 50x + 100x + 125x:


Here's how to use the Modulation Features:

• Areas more likely to be revisited are rendered more opaque, thereby increasing their visibility on the chart. In contrast, areas less likely to be revisited are shown more transparently. This delivers a straightforward visualization of where the bulk of trading activity is occurring. There's also a Dynamic Theme mode that utilizes color, not just transparency, to emphasize important areas.
  

Main Features:

• Significant candles are identified and marked with colors, indicating high-probability areas the market may revisit.
  
• The indicator facilitates the display of arbitrary liquidation levels based on user-defined leverage settings.
  
• Features modulation options that adjust the transparency and color of the areas shown, based on their importance, offering an intuitive grasp of the market. The Dynamic Theme mode greatly enhances market readability.
  
• The indicator can exhibit what we term ghosts, or dead/recovered areas, enabling users to visually identify which areas were recovered.
  
• Fair Value Gaps can be presented alongside significant candles as both denote imbalances in the chart. Nonetheless, we recommend deactivating the Fair Value Gaps feature when showing numerous liquidation levels, allowing for the representation of data across a broader price range. Moreover, it's crucial to recognize that enabling Fair Value Gaps can influence calculations.
  

Documentation:

The indicator is accompanied by comprehensive documentation detailing all its options for user reference. Additionally, we provide a comprehensive instructional video.

Limitations:

A. The indicator can only showcase a limited amount of areas, so if many liquidation levels are displayed, the price range that can be shown becomes more narrow.
B. Analogous to point (A), activating the Fair Value Gaps Feature also constricts the price range of identified areas.

Recommendation:

• If you wish to display more data, employ the indicator multiple times with varying settings. Also, use the 'Hide Normal Vectors' option on all but one indicator so the 'Normal' areas don't overlap.
  
• If you experience frequent timeouts, reduce the 'Maximum Vector Zones' setting (We've found that 350 works adequately).
  

1 nov 2023

Notas de prensa

User friendly option naming, and comments.

9 feb

Notas de prensa

Increased maximum leverage settings from 500 to 1000, because some brokers allow 1000

9 feb

Notas de prensa

Chart Update

9 feb

Notas de prensa

Update Chart Again (looks different after publish)

9 feb

Notas de prensa

Chart Update

14 feb

Notas de prensa

• Added support for MMR, aka Maintenance Margin Rate %.
  
• 'Hide Normal Vectors' option is now enabled by default. (Users complained they couldn't see the liquidations correctly; this was not the case, but it's better to make things more user-friendly.)
  
• Fixed some tooltips.
  

15 feb

Notas de prensa

• Introduced an alternative method for calculating key zones/vectors.
  

18 feb

Notas de prensa

• Added volume filter
  

22 mar

Notas de prensa

• Implement additional volume filtering options, particularly for sub-1-minute timeframes and enhanced Zones++ mode
  

10 sept

Notas de prensa

• This update enhances the volume filter by adding volatility sensitivity, dynamic volume filtering, Z-score-based spike detection, and adaptive decay, replacing almost all previous filtering methods. The new parameters can be adjusted to achieve similar or improved results, ensuring the most relevant data is highlighted on the chart.