šŸ’” Understanding the Settlement Map! šŸ“ŠšŸš€

Have you ever heard of "liq map"?

Here's the summary: It's a visual chart that reveals selloffs or liquidation risks in the cryptocurrency futures market by predicting them based on past price trends.

šŸ’¼ Why is this important? When trading on unregulated cryptocurrency derivatives exchanges, settlement risks are always present. When the liquidation price of a trader's position is reached, the exchange's risk mechanism forcibly closes it. Impact? Small for a few positions, but huge if thousands share similar settlement prices. It can trigger a chain reaction, causing rapid price movements.

šŸ“ˆ How to use the Settlement Map:

-> Breakout Trading: Identify potential breakout points.

-> Scalp Trades: Execute fast and profitable trades.

-> Precision in Stop-Loss: Place stop-loss orders strategically.

-> Profits with Liquidity: Capture gains in areas of high liquidity.

->Large Positions: Optimize execution, avoid unnecessary slippage.

->Market Fluctuations: Anticipate rapid price changes and retractions.

šŸ“Š And the axles? X-axis = marked price, Y-axis = settlement intensity. The chart does not show exact outstanding contracts, but it does indicate the intensity of each liquidation cluster compared to others. Higher bars = stronger reaction due to increased liquidity.

šŸŒˆ Note: Colors differentiate settlement clusters, they do not provide additional information.

šŸŒ Settlement maps come in different forms: Each one corresponds to different periods and leverages, generating unique clusters. Denser and taller clusters mean a greater impact on price behavior. Be informed, trade wisely!

https://www.coinglass.com/pt/pro/futures/LiquidationMap

šŸš€ #NegociacaoCripto #MapaDeLiquidaĆ§Ć£o #EstrategiasDeNegociacao #StayInformed

$PIXEL