LessonsIndicator atlasPositions and leverage
Liquidations and liquidation clusters
Forced closes of leveraged positions: those that have already happened, and places where they might happen.
How we compute it
The clusters in Charts are the desk scanner's estimate of where the liquidation prices of open positions lie. The circles on the lesson figures are liquidations that have already happened (the desk's liquidation tape, in USD millions per candle).
How to read it
- A liquidation cascade is forced selling (or buying), not the decision of someone who knows more.
- A large cluster close to price is fuel: reaching it can accelerate the move.
Traps
- A cluster is an estimate from public positions, not a certainty; positions change.
- The end of a cascade is hard to time in real time.
Combine with
- With the day's levels: stops and liquidations often sit just beyond PDH and PDL.
- With open interest: a cascade is a sharp drop in OI.
In Charts
Indicators → Liquidation clusters; Desk → liquidation map and tape
The figure from a real market slice, the exercises and the Charts workstation button are in the Lessons tab.