I just realized that the liquidation map looks like this!

The liquidation map allows us to see through market sentiment and points of high liquidity.

It displays the possible liquidation positions of tokens at this time, where the horizontal axis represents the market price level, and the vertical axis represents the relative strength of liquidation. The higher and denser the column, the larger the positions being liquidated in that price area, and the greater the impact on the market.

If a large number of liquidations occur in the market at the same price, then a significant amount of buy or sell orders will emerge, further pushing the price up or down, which in turn leads to more liquidations. This is a chain reaction in the market, and this mechanism amplifies price volatility.

We can use the information provided by the liquidation map to earn profits from the fluctuations at potential liquidation points through grid trading, or we can avoid trading in this area in advance. This information can also help us optimize our stop-loss points.

Suppose you are a market maker and you want to acquire more low-priced chips, what should you do? The most direct way is to push the market price down, causing panic, triggering on-chain reactions, and liquidating a large number of retail positions. This is also a common tactic used by market makers to accumulate positions at low levels. Therefore, if we can foresee these areas of high relative liquidation strength in advance, we can avoid setting our stop-loss points here to prevent falling into the market maker's trap. These areas may also serve as support or resistance levels in a market trend, allowing us to buy low or take profits high.