Liquidity Zone: Measuring Net Delta Position with a Heatmap

The Liquidity Zone metric tracks the Net Delta Position over time using a heatmap.

Positive and High Values: Indicate significant liquidity associated with Long positions opened in recent months.

Negative Values: Highlight areas dominated by Short positions, often marking local price reversals.

Current Analysis:

The market is currently highly liquid in Long positions. This means future liquidations will disproportionately affect Longs compared to Shorts.

If the price rises, there will be minimal liquidation volume for Shorts.

However, if the price drops, liquidation bars for Longs will be massive.

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