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AxeAlgo Gold · Product Guide

Precision Liquidation Heatmap

A map of where leveraged traders may be vulnerable, and how price behaves when it reaches those areas.

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Overview

A Map of Vulnerable Leverage, Not a Magic List

The indicator looks for areas where a lot of leveraged traders might get trapped or forced out of their trades, then watches how price reacts when it gets there. Imagine someone has $100 but uses 10x leverage to control a $1,000 position. If price moves too far against them, their exchange can automatically close that trade, a forced closing called a liquidation.

Important: the indicator does not have a list of exactly where every trader's liquidation order sits. No indicator does, that data doesn't exist publicly. It calculates likely areas using price structure, volume, volatility, leverage assumptions, and Open Interest.

Find important levels
↓
Estimate vulnerable leveraged liquidity
↓
Watch how price reacts when it arrives
Precision Liquidation Heatmap showing modeled liquidity bands and dashboard on a live Bitcoin chart

BTC/USDT, 5m. Gold bands mark modeled liquidity above and below price, with the full dashboard, Bias, Target, Hottest Pool, Confluence, and Stop-Hunt Rate, in the top right.

Foundations

Leverage and Liquidation, in Plain Terms

What Is Leverage?

Leverage lets a trader control a position much bigger than the money they actually put in. 10x leverage means $100 controls a $1,000 position. It magnifies both gains and losses.

What Is a Liquidation?

When a leveraged trade loses too much, the exchange force-closes it automatically because the trader no longer has enough margin to keep it open.

Why leverage matters here: the more leverage a trader uses, the smaller the price move needed to wipe them out. That's why the indicator can use assumed leverage tiers (100x, 50x, 25x, 10x) to estimate how close to price these vulnerable areas might sit.

Data Input

What Is Open Interest?

Open Interest (OI) is how much futures trading is currently still open, the total number of leveraged positions that haven't been closed yet.

▲ OI Rises

Lots of new leveraged positions are being opened. More positioning is building up in the market.

▼ OI Falls

Lots of positions are being closed. Positioning is unwinding, sometimes because traders were forced out.

The indicator pulls OI from Binance, Bybit, and OKX on supported markets and aggregates them into one reading. On markets without a futures OI feed, like many Forex or metals symbols, the indicator degrades gracefully and relies on price and volume instead.

Step One

Finding Important Levels First

Before it can estimate liquidity, the indicator needs to know which price levels actually matter. It starts with Swing Highs and Swing Lows: if traders were betting price would keep climbing into a Swing High, their positions become vulnerable just above it. The reverse is true for a Swing Low.

Swing High

price rises, then turns down

Possible short liquidity above

Swing Low

price falls, then turns up

Possible long liquidity below

Spacing the Bands

ATR Steps vs. Leverage Tiers

The indicator draws several bands around each important level, not just one. Two modes decide how far apart those bands sit.

Default

ATR Steps

ATR measures how much price normally moves. When the market is moving a lot, bands spread further apart. Spacing is based on current volatility.

Optional

Leverage Tiers

Uses assumed leverage levels, 100x, 50x, 25x, 10x. Higher leverage means a smaller move liquidates a trader, so bands are spaced by assumed leverage, not volatility.

In one line: ATR Steps = distance based on how much the market is moving. Leverage Tiers = distance based on how much leverage is assumed.

Why Some Lines Glow Brighter

Not Every Area Is Equally Important

Each band gets a strength score. The brighter, thicker, or longer it appears, the more the model believes leveraged liquidity is concentrated there.

Swing Importance

How significant the price swing was that created the level.

Volume

How much trading activity happened around that area.

Open Interest

How much leveraged positioning was open at the time, when data is available.

Confluence

Whether multiple calculated levels are stacking close together.

A bright gold band means: "more potential leveraged liquidity is modeled around here." It does not mean: "we know exactly how many traders will be liquidated here."

When Clues Agree

What Is Confluence?

Confluence means several different calculated areas agree with each other, landing around the same price. Think of three people separately telling you "meet at the same place," that place becomes more interesting because multiple independent clues point to it.

Optional Extras

Additional Liquidity Sources

Besides normal swing points, the indicator can optionally also map:

Prior Day / Week H&L

The previous session's high and low, a classic area traders watch.

Higher-Timeframe Swings

Important highs/lows pulled from a bigger timeframe.

Round Numbers

Psychological levels like $80,000 or $2,000 that often attract orders.

All optional, switched on in settings, none are forced onto the chart.

What Happens on Arrival

Sweep, Stop-Hunt & Breakout

When price actually reaches a modeled area, the indicator marks it as swept. Depending on settings, a sweep can be confirmed by a wick or by a full close beyond the level. What happens next gets classified one of two ways.

Flagship Concept

Stop-Hunt

Price pushes through the area and then properly reverses back through it within the reaction window. A brief touch alone isn't enough.

The Other Outcome

Breakout

Price sweeps the area but continues in the same direction, no reversal within the reaction window.

Confirming With Positioning Data

What Is an OI Flush?

The indicator watches Open Interest for sudden, sharp drops. If there were lots of open futures positions and OI suddenly drops sharply, that means a lot of positions closed around the same time, possibly because traders were forced out together.

Sweep + OI Flush together is a stronger combined signal than either alone: price reached a modeled liquidity area, and a meaningful chunk of leveraged positioning just closed here.

OI Flush only works on markets with an available OI feed. On markets without one, the indicator relies on price and volume alone.

Reading Direction

What Is the Target?

The indicator compares total modeled liquidity above price to total modeled liquidity below price.

More Liquidity Above

Dashboard shows Bias: Upside, it then finds the strongest nearby pool above as the Target.

More Liquidity Below

Dashboard shows Bias: Downside, it then finds the strongest nearby pool below as the Target.

Target is not a guarantee. "Bias: Upside, Target: $79,500" means that's the strongest modeled liquidity area the indicator is watching above price, not a promise price has to go there.

Precision Liquidation Heatmap with a downside bias and confluence stars on a live Ethereum chart

ETH/USDT, 15m. Bias reads downside, with 3-star Confluence and a live Stop-hunt rate of 58% shown on the dashboard.

After a Breakout

What Are Those Dotted Lines?

After price breaks through a liquidity area, the indicator can look ahead for the next un-swept pools in that direction and draw dotted rays toward them. This is a possible liquidity path, if price keeps moving in that direction, these are the next modeled areas it may be watching. It is a map of what's ahead, not a forecast of what will happen.

At a Glance

What Does the Dashboard Tell You?

Field What It Means
BiasWhich side (above or below price) currently holds more modeled liquidity.
TargetThe strongest reachable modeled pool in the Bias direction. Not guaranteed.
Hottest PoolThe single strongest liquidity area currently on the whole map.
Nearest Above / BelowThe closest important modeled pools sitting just above and below price.
ConfluenceHow much different modeled liquidity is stacking together right now.
Stop-Hunt RateHistorically, what share of resolved sweeps became Stop-Hunts.
Open InterestCurrent futures positioning info, shown when an OI feed is available.
Historical Behavior, Not a Promise

What Does Stop-Hunt Rate Mean?

Example: if the indicator has watched 100 completed sweeps and 60 became Stop-Hunts, the dashboard shows 60% Stop-Hunt Rate.

What it is NOT: "the next trade has a 60% chance of winning." It is not a trading win rate or a performance guarantee.

What it IS: the historical percentage of this symbol/timeframe's resolved sweeps that reversed into Stop-Hunts, based on the data tracked so far. Use it as context for how this market has historically behaved around swept liquidity, not as a signal to trade on its own.

Visual Legend

How to Read the Chart

Bright Gold Band

Stronger modeled liquidity, according to the indicator's scoring.

Darker Band

Lower-strength modeled liquidity, still worth noting, less emphasis.

Merged Bands

Confluence, multiple calculations agreeing on one area.

Dotted Ray

Target or liquidity path, the next area being watched.

Precision Liquidation Heatmap on a Gold market with no futures Open Interest feed

Gold Spot, 1m. Same engine on a market with no futures OI feed, the dashboard shows "Open interest, no feed" and the model falls back to price and volume alone.

Putting It All Together

The Whole Indicator in One Story

Imagine a crowded field where you can't see exactly where everyone stands, but you can see the places where people usually gather. That's what the indicator does with leveraged positioning.

Important levels
↓
Liquidity model (volatility, leverage, volume, OI)
↓
Heatmap
↓
Hot pools (confluence makes them brighter)
↓
Sweep
↓
Stop-Hunt / Breakout
↓
Next pools
Keep These in Mind

Important Things to Remember

No Direct Feed

The indicator does not see every trader's actual liquidation order, it calculates modeled areas.

Brightness = Model Strength

Brighter bands mean the model considers them stronger, not confirmed.

Target ≠ Guarantee

Target is the strongest reachable modeled pool in the current direction, not a promised destination.

Stop-Hunt Rate ≠ Win Rate

It's historical sweep behavior, not a prediction of your next trade's outcome.

Confluence = Agreement

Multiple calculated areas lining up near the same price, not proof of anything.

OI Availability Varies

Some markets, like metals or Forex, have no futures OI feed, the model adapts automatically.

“Precision Liquidation Heatmap finds important price areas, estimates where leveraged traders may be vulnerable around them, and then watches how price behaves when it reaches those areas.”

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