COIN LIQS

Forced position closes on Binance futures for the coin, per bar.

What it is. When a leveraged position runs out of margin, the exchange closes it itself with a market trade. That is a liquidation.

• Histogram. A bar is a fact that already happened: on this bar some positions ran out of margin.
• A long liquidation hits the order book as a market sell. A short liquidation hits it as a market buy.

See forced trades. A liquidated long is a market sell nobody planned. A liquidated short is the same kind of buy.

For example.

• A LONG bar = 30M on a red candle. On this bar $30M of market sells from the exchange were added to the usual selling: it was closing longs that ran out of margin.
• A SHORT bar on a green candle is the same thing, but with buys.
• A bar several times taller than its neighbors means the move ran on forced trades. That tells you what the move was made of, not where it will end.

An abnormal liquidation spike after a big drop is often a pause in selling: the forced sellers got flushed out, there is no one left to push. A pause is not a reversal: by our data, the day after such a flush is flat on average, not rising. There is no mirror on rallies — after shorts get flushed, the rise usually continues.