DEPTH·RADAR
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Session 09 · Derivatives

Liquidations

A liquidation is a forced market order: long liquidations sell, short liquidations buy. In clusters they become fuel — and the chart patterns they leave are among the most mechanical in crypto.

intermediate3 patterns
LQ-01

Cascade into support

Longs liquidate in a chain straight into a thick bid wall. When the red circles stop appearing and the wall holds, the fuel is spent — spring loaded bounce.

Invalidated when the wall gives way while circles keep printing.

LQ-02

Squeeze fuel

A breakout leg dotted with green circles: shorts are being force-bought all the way up. As long as fresh clusters print, the leg feeds itself.

Fades when green clusters stop while price stalls.

LQ-03

Post-flush fade

One giant cluster, a violent wick, then silence. The forced flow is done; price mean-reverts toward where the move started. Trade the exhaustion, not the panic.

Invalidated if a second cluster prints at the same level.

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