$SIREN Recently I discovered a tool I didn’t know about, and I found it super interesting for better understanding how the futures market moves. It’s not a magic formula to make money, nor will it solve all analysis problems, but it’s an excellent educational complement to understand market psychology. It’s called the Liquidation Heatmap.
🤷‍♂️ What exactly is it?
When traders trade with leverage, if the price goes against them, there comes a limit where the exchange forcefully closes their position (liquidates it).