- liquidation settings
- filtering larger liquidations
- where I look for liquidations
- exo specific rekt settings
settings within @ExochartsC
using rekt within the FPBS is how I found it to be most beneficial, using rekt all however, if you have enough screen space I would recommend having 2 separate rows for rekt, one for rekt long and the other for rekt short.
filtering out liquidations
rekt info you will be seeing within Exos fpbs, is going to be all rekt positions on the side in which you have set it to, this is not filtering out any data.
rekt bubbles - ensure hide orders less than (whatever size checked) I use 145k (BTC/USDT)
why do I need both
questions I will ask myself upon any poi gets hit:
1 - is there a spike in liquidations
2 - if there is a spike, does that contain any specific larger players being liquidated
rekt within the fpbs answers the 1st question
rekt bubbles answers the 2nd
spike in liquidations
a spike - is simply generally something I look at relatively.
however as there is not liquidations every single candle, it is not as beneficial to look at this data and treat it strictly relative.
for me (using BTC/USDT) a candle with > 150k is a spike
larger players being liquidated
why is this beneficial?
- from my own stats and testing on my own trades, if a trade has a tag that a "larger liquidation has occurred" ie - a bubble (which auto represents trades values which are more than 145k) have a positive ev on their own.
grading
spike in liquidations + larger playing being liquidated within = A*
spike in liquidations on it's own = B+
this is just from my own testing, and is off the basis I'm taking out all other confluences of the trade I am taking.
where I look for liquidations
- major swing points
- runs of multiple swing highs/lows
most incompetent people will be allowing themselves to get liquidated specifically upon a run of either one of the two above.
advanced
liquidations occur a lot within inefficiencies, as there is a large gap for price to run through with little to no s/r, allowing for large liquidation cascades.
looking for an inefficiency to be filled followed by a run of liquidity is a favourite of mine to trade.
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total number of outstanding derivative contracts not yet settled.
for every buy there is a sell, but not every buy is a new long and not every sell is a new short.
short close = buy
long close = sell
open interest increases when both sides are opening.
open interest indicator:
when plotted as an indicator below price its particularly helpful for spotting:
> new traders becoming offside
> traders opening positions early
> positional squeezes
more importantly, when watching key areas, watching how open interest reacts as you probe certain levels, such as range highs/lows.
one of my favourites is watching new positions rapidly join in minor bounces as price is in free fall, you see them instantly regret this as momentum continues against them and are forced to close.
stop orders/triggers ā triggered at market and most of the time forced with someone being forced out the market (stopped out).
note - pattern/breakout traders in general can also use trigger orders to buy/sell the breakout.
footprint charts:
displays ONLY market orders.
most common setups is to see market sells on the left with market buys on the right ā bid-ask profile
I find footprints the best for spotting absorption or exhaustion in the markets as they display already transacted data.
i.e when you see lots of sell orders at the same price level without price able to budge it is sufficient evidence to say limits are holding up price.
footprints do not have to be shown on time based charts only either, they are extremely useful when monitoring volume charts, delta charts or range bars, in particular on lower time frame equivalents.
tldr: footprints show a record of already transacted orders, unlike heatmaps displaying resting orders, which have the ability to be pulled/added to.
the naming is meaningless, the core fundamental behind it is that there is a piece of price which price moved quickly through (one candle), relative to the time frame you look at.
first touches:
when price initially revisits this void it can act as a level where:
1. stops are triggered 2. traders attempt to trader for the fill (anticipate a move)
the edge then comes from being able to spot these traders at this initial touch and fade them.