How to Read a Liquidation Heatmap: The Mechanics, the Magnet Effect, and Three Practical Uses

Liquidation maps mark where leveraged positions cluster their forced-close prices. Why those bands "attract" price (the magnet effect and stop hunts), the limitation that map data is estimated rather than measured, and three ways to place entries and stops around the bands.

Liquidation maps mark where leveraged positions cluster their forced-close prices. Why those bands "attract" price (the magnet effect and stop hunts), the limitation that map data is estimated rather than measured, and three ways to place entries and stops around the bands.