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How to read the liquidation map???
Above the current price level represents stop losses or liquidations of holders with short positions. The deeper the color, the stronger the liquidation intensity and the more chips are accumulated here. Often, main force capital will push the price toward this level to capture market liquidity.
What is a vacuum zone???
In the liquidation vacuum zone, there are no active orders for stop losses and forced liquidations. Relatively speaking, prices in this zone will experience rapid rallies or declines.
So how do we trade???
Liquidation dense zones are often our entry points, accompanied by long wicks on naked candles, indicating obvious resistance/support at the current price level. There will be a large volume of counter-directional order executions at this point, so we follow the macro trend and counter the micro trend (follow the major trend, counter the minor trend) $BTC $ETH