*OVERVIEW This indicator is designed to analyze liquidations on the Binance futures market.
* USER GUIDE: The main purpose is to evaluate liquidation risks using volume differences, price change percentages and changes in open positions between futures and spot markets. The indicator takes user input as the mean liquidation length over a certain period of time and the option to change bar colors.
* SETTING PANEL - VİSUALİZATİON
"The 'Mean Liquidation Length' setting on the indicator represents the average size of liquidation in the market. This setting is used to calculate the average amount of liquidation that has occurred over a specific time period. Traders can better understand the overall risk level and volatility of the market by using this setting. A higher average "Liquidation length can mean larger liquidations and potentially higher market risk. Therefore, the value of this setting plays an important role in assessing market conditions and possible liquidation risks."
In the indicator, the 'Activate Bar Color' setting is used to change the color of the bars on the chart when liquidation levels exceed a certain threshold. This feature provides traders with a visual cue to quickly identify high liquidation risks in the market. If liquidation levels rise above the set threshold, the bars turn into a predefined color, allowing traders to easily spot potential high-risk situations. This is particularly valuable in fast-moving markets, serving as an important alert mechanism for traders.
* ALARMS In this indicator, alarms are triggered specifically when liquidation levels surpass a set threshold. T his feature is designed to alert traders when there is a significant increase in liquidation activity, indicating potentially high-risk market conditions. I t serves as a crucial tool for traders to stay informed about critical market movements and manage their trades accordingly.
*ALGORITHM The main purpose is to evaluate liquidation risks using volume differences, price change percentages and changes in open positions between futures and spot markets. The indicator takes user input as the mean liquidation length over a certain period of time and the option to change bar colors.
Its algorithm compares volume data for futures and spot markets, calculates price change percentages and analyzes changes in open positions. This data is used as an indicator of liquidation risks. The indicator uses bar charts and color coding to visualize the calculated liquidation risk.
When using this indicator, careful analysis should be made, taking into account the volatility and variability of the markets. The indicator should be used as a guide only and all investment decisions should be supported by a comprehensive market analysis.
* Example In the example below, we see the increasing liquidation level in bars with high liquidation.
It provides the opportunity to easily monitor liquidation risks. It supports making more informed decisions against market movements. It is a useful tool for observing relationships between futures and spot markets.
* Benefits
Its advantages are that it enables users to monitor liquidation risks more easily and helps them make more informed decisions regarding market movements.
It is also a useful tool for observing relationships between futures and spot markets.
If you have any ideas what to add to my work to add more sources or make calculations cooler, suggest in DM .