
Jesse|May 21, 2025 14:07
🔥 What is a heat map for clearing? Why do I dare to say that I want to go towards 107+when BTC is 102K+?
Clearing heatmap is a visualization tool used to show the locations where a large number of traders in the BTC/USDT market are being liquidated. It can help us identify important price areas where the market may move next. 🧐
The heatmap displays the density of clearing through color: the yellow area represents a large amount of clearing, and the darker the color, the less clearing. These areas often attract prices closer like "magnets".
💡 Why is clearing heat maps important?
In this 24 * 7 casino, many people use leverage, but if the price fluctuates too much in an unfavorable direction, their positions will be forcibly liquidated.
Understanding these 'hotspot areas' can help:
-Find support and resistance levels
-Predict possible price trends
-Avoid being liquidated
-Better develop entry and exit plans
🧐 How to use a heat map for clearing?
-Yellow area=High definition computing area (prices may shift towards this area)
-Prices are usually attracted by these areas
-Clearing intensive areas=high volatility
-Need to pay attention to real-time changes, as traders will constantly adjust their positions
🚀 How to use a clearing heatmap in trading?
-Short term trading: Fast in and fast out trades can be conducted when the price approaches the high-definition calculation area
-Breakthrough or reversal: When prices touch these areas, there may be significant fluctuations
-Better Stop Loss/Take Profit Strategy: Reasonably set stop loss to avoid being swept away in advance
📊 Practical examples
Example 1: Price impact on high-definition computing area
A trader discovered a large yellow area near 62000 on the heat map. At that time, the price was consolidating around 61500, but due to the accumulation of a large number of liquidation orders above, the market quickly surged to 62000, causing a rapid decline after liquidation. This mode is called "liquidity capture" and can be used to predict price trends.
Example 2: Set stop loss using heat map
A trader who was planning to short BTC/USDT set their stop loss above a major clearing zone instead of directly within a clearing intensive zone, thus avoiding premature triggering of the stop loss. Heat maps can help traders avoid common clearing traps.
Example 3: Using liquidation to identify reversal points
A trader saw a clearing intensive area near 59000 and waited for the price to touch that position. When the market quickly dips and triggers liquidation, there is a clear buying trend, and he enters the long market based on this, and the market then rebounds upwards.
When BTC fell to 102K+, it hit the intensive clearing zone and began to rebound, while the 107K+above was in the intensive clearing zone, with a probability of cleaning up upwards. So I entered the short-term long market to earn short-term volatility profits.
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