Aggregated Liquidations

Track forced liquidation events across the market, showing where leveraged traders are being stopped out and how liquidation volume shapes price action.

What is Aggregated Liquidations?

Aggregated Liquidations displays historical liquidation events as bars or markers directly on your chart. Each bar represents the total USD volume of positions that were force-liquidated during that candle. Long liquidations (red) show where leveraged long positions were forcefully closed — resulting in market sell orders. Short liquidations (green) show where leveraged short positions were forcefully closed — resulting in market buy orders.

Liquidation data is sourced from CoinGlass, which aggregates liquidation events across major exchanges. This gives you a comprehensive view of where forced exits are happening market-wide, not just on a single venue.

Large liquidation spikes frequently mark local tops and bottoms. When a cascade of long liquidations fires during a sell-off, the forced selling often exhausts the remaining sell pressure, creating a capitulation event that precedes a reversal. The same applies in reverse — a spike in short liquidations during a rally can mark the blow-off top as the last shorts are squeezed out.

Key Concepts

• Long Liquidations (Red): Leveraged long positions force-closed by the exchange when margin is insufficient — these generate market sell orders that push price lower
• Short Liquidations (Green): Leveraged short positions force-closed by the exchange when margin is insufficient — these generate market buy orders that push price higher
• Liquidation Volume: The total USD value of positions liquidated in a given candle — larger bars indicate more significant forced exits
• Liquidation Cascade: When liquidations at one level push price into the next cluster of leveraged positions, triggering further liquidations in a chain reaction
• Capitulation: A massive spike in liquidation volume that exhausts one side of the market — often marks a local extreme (top or bottom)
• Display Modes: Can be shown as markers on candles for a compact view, or as a separate histogram sub-chart for detailed volume analysis

How to Use Aggregated Liquidations

1. Open Chart from the sidebar and navigate to the overlay settings
2. Enable the Aggregated Liquidations overlay
3. Red bars appear for long liquidation volume; green bars appear for short liquidation volume
4. Monitor the size of liquidation bars relative to recent history — unusually large spikes signal significant forced exits
5. Watch for liquidation cascades during sharp moves to identify potential exhaustion points

What to Look For

• Bullish signals: A large spike in long liquidations at the bottom of a sell-off often marks capitulation — the leveraged longs have been flushed out and the forced selling is complete. After a long liquidation cascade, the market frequently reverses upward as the sellers are exhausted. Minimal short liquidations during a pullback suggests shorts are not yet overextended and the rally may have further to go.
• Bearish signals: A spike in short liquidations at the top of a rally can mark a blow-off top — the short squeeze has played out and there are no more shorts left to fuel the move. Large long liquidations occurring on relatively small price drops indicate the market is overleveraged to the long side and vulnerable to further downside. Repeated long liquidation events without a reversal signals persistent weakness.
• Key patterns: Liquidation cascades — a series of growing liquidation bars as price moves in one direction — are among the most powerful signals. They indicate that forced exits are feeding on each other, and the move will typically continue until the cascade exhausts itself. A sudden absence of liquidation volume after a prolonged cascade often marks the turning point. The largest single-candle liquidation spike in a move frequently coincides with the exact local top or bottom.
• Combine with: Liquidation Levels to see where the next batch of liquidations will be triggered (predictive, Hyperliquid-specific), OI Delta to confirm that open interest is actually declining during liquidation events, Trade Footprint to see the execution flow during liquidation cascades

Supported Exchanges

Tips

• The most actionable signal from liquidation data is the capitulation spike — an unusually large liquidation bar that dwarfs the previous ones. This often marks the exact local extreme
• Do not confuse this with DCT Alpha’s Liquidation Levels overlay, which shows predictive liquidation prices calculated from Hyperliquid positions. Aggregated Liquidations shows historical events that already occurred
• Liquidation cascades are more common and more violent during periods of high open interest — when the market is heavily leveraged, even small price moves can trigger chain reactions
• Pay attention to the ratio of long vs. short liquidations — a market that is consistently liquidating one side is telling you about the prevailing positioning imbalance
• Liquidation data has a slight delay as it is aggregated from exchange feeds — use it for context and confirmation rather than for split-second timing