The underlying assumption (as with all liquidation calculations) obviously is that traders used fixed margin or go "all in" on their cross-margin account.
You then can configure a minimum trade volume and a minimum price change in percent for a candle to start computing liquidation levels from that candle
Additionally: configure the price base for the liqudation level: Candle high or low (default) works well, but you can also set "candle close" or "median high/low"
The indicator will then plot horizontal lines on the main chart showing price levels where many positions opened at the configured "start candle" will likely get liquidated.
It works for all BitMEX contracts and while it has been optimized for BitMEX, it will work on other exchanges with the same leverage levels (25x, 50x, 100x) and maintenance margin requirements too.
This indicator uses the Smart Volume indicator to compute the volume at the "start volume candle" setting where the liquidation level starts. This indicator can be found here: Smart Volume: tradingview.com/script/LgRTt6b8-Smart-Volume/
เอกสารเผยแพร่
⋅
- added 10x liquidation levels - added candle close price to liquidation alert messages
hey mate, i notice after a red candle that triggers change in liq levels that the liq levels update on the short side of price and not the long side (vice versa is also true for green candles). i thought that a red candle would be short positions entering through market sells (aggressors) and hence we would want to know their liq levels on the long side of price (not short side as your indicator shows)?
clagccs
⋅
Hi @ekliptos this script is really nice, thank you, I hope you can keep improving it.
I think could be avoided vertical and diagonal lines and it would be great if I had the possibility of not only drawing a support/resistance based on the greater volume but if there are other big volumes these can also be drawn
Perhaps it would also be great if once a candle passes a support/resistance the line does not continue to be drawn, this could be possible?
But right now this script works great to me, thanks!!!
Ekliptor
⋅
@clagccs, It is not possible to make gaps (hide the horizontal line at bars) when using the plot() function. I am looking into a workaround, but have not found anything yet