Q: Directional signals

- **Liq Ratio > 2.0** — longs are being liquidated much more than shorts (bearish cascade) - **Liq Ratio < 0.5** — shorts are being liquidated much more than longs (bullish squeeze) - **Liq Ratio ≈ 1.0** — balanced liquidations on both sides

Q: Exhaustion signals

- **Large Liq Total followed by decreasing Liq** — forced selling is exhausting, potential bounce - **Prolonged high Liq Long** — overleveraged longs are cleared out, potential capitulation bottom

Q: Indicators

| Indicator | Description | |-----------|-------------| | `LiqLong` | Liquidated long positions value ($) | | `LiqShort` | Liquidated short positions value ($) | | `LiqTotal` | Total liquidations (Long + Short) ($) | | `LiqVolPct` | Liquidations as % of trading volume | | `LiqRatio` | Long liquidations / Short liquidations ratio |

Q: Example conditions

| Condition | Meaning | |-----------|---------| | `LiqVolPct > 5` | Liquidations exceed 5% of volume — extreme event | | `LiqRatio > 2` | Longs are liquidated 2x more than shorts — bearish | | `LiqRatio 1000000` | Liquidation volume exceeds $1M — significant event |

Question 1

What are Liquidations?

Accepted Answer

Liquidations occur when a trader's leveraged position is forcibly closed by the exchange because the margin is insufficient to cover losses. Large liquidation events can create cascading price movements as forced selling/buying pushes prices further, triggering more liquidations.

Question 2

How it works

Accepted Answer

``` Liquidation occurs when: Unrealized Loss ≥ Maintenance Margin Liq Long ($) — total USD value of liquidated long positions Liq Short ($) — total USD value of liquidated short positions Liq Total ($) — Liq Long + Liq Short Liq/Vol % — (Liq Total / Trading Volume) × 100 Liq Ratio — Liq Long / Liq Short ```

Question 3

Key features

Accepted Answer

- **Cascade indicator** — large liquidation volumes often trigger chain reactions - **Volatility measure** — high liquidation activity indicates extreme price movements - **Directional bias** — Liq Ratio shows which side (longs or shorts) is being squeezed - **Volume relative** — Liq/Vol % normalizes liquidations against trading activity

Question 4

Cascade signals

Accepted Answer

- **Liq Total spike** — large forced selling/buying, potential for continued momentum - **Liq/Vol % > 5%** — liquidations are a significant portion of volume, extreme event - **Liq/Vol % < 1%** — low liquidation activity, market is stable

Question 5

Directional signals

Accepted Answer

- **Liq Ratio > 2.0** — longs are being liquidated much more than shorts (bearish cascade) - **Liq Ratio < 0.5** — shorts are being liquidated much more than longs (bullish squeeze) - **Liq Ratio ≈ 1.0** — balanced liquidations on both sides

Question 6

Exhaustion signals

Accepted Answer

- **Large Liq Total followed by decreasing Liq** — forced selling is exhausting, potential bounce - **Prolonged high Liq Long** — overleveraged longs are cleared out, potential capitulation bottom

Question 7

Indicators

Accepted Answer

| Indicator | Description | |-----------|-------------| | `LiqLong` | Liquidated long positions value ($) | | `LiqShort` | Liquidated short positions value ($) | | `LiqTotal` | Total liquidations (Long + Short) ($) | | `LiqVolPct` | Liquidations as % of trading volume | | `LiqRatio` | Long liquidations / Short liquidations ratio |

Question 8

Example conditions

Accepted Answer

| Condition | Meaning | |-----------|---------| | `LiqVolPct > 5` | Liquidations exceed 5% of volume — extreme event | | `LiqRatio > 2` | Longs are liquidated 2x more than shorts — bearish | | `LiqRatio 1000000` | Liquidation volume exceeds $1M — significant event |

Question 9

Tips

Accepted Answer

- Liquidation cascades are self-reinforcing: forced selling pushes price down, triggering more liquidations - After a large liquidation event, the market is often "cleaner" — overleveraged positions have been removed - Liq/Vol % is more useful than raw liquidation amounts for comparing across time periods - Combine with OI: falling OI + high liquidations = forced position closing (not voluntary) - **Note:** Liquidation data requires paid data sources (e.g., CoinGlass). Currently loaded as placeh