#本周美国将公布PCE、GDP数据 Never judge the main direction by just looking at the liquidation map

Inferring the main direction through the liquidation map is a strategy that can be used as a reference, but it needs to be used with caution. Here are some reasons:

1. Direction of liquidation orders:

- When prices rise, if a large number of short orders are liquidated, it indicates that there are many traders in the market who are shorting but are forced to close their positions. This may usually mean that the buying power of the market is strong.

- Conversely, when prices fall, a large number of long orders are liquidated, indicating that there are more longs in the market and they are forced to close their positions as prices fall.

2. Comparison of liquidation strength:

- If the number of short orders liquidated during an increase is significantly higher than the number of long orders liquidated during a decrease, it may mean that the short-selling sentiment in the market is heavier, and the main force may take the opportunity to pull the market and liquidate more shorts through short squeeze.

- But it should be noted that this is not the only factor that determines the main force's pull. The operation of the main force is often more complicated than it seems on the surface, and may also include position management, accumulation, washing and other strategies.

3. Combine with other data:

- Relying solely on liquidation data is not enough to fully judge the market direction. Other data such as open interest, capital flow, and trading volume can be combined to better understand market sentiment.

- Pay attention to high liquidation clusters, which usually have more leveraged traders and are more likely to experience violent fluctuations when reaching these areas.

In summary, liquidation intensity can be used as a reference, but it should not be relied on alone to judge the direction of the main force.