Exercise — Liquidations

Practice: Liquidations cases

Read liquidity zones as possible impulse and reaction areas.

Indicator exercise

Liquidation cascade after overheated leverage

Bitcoin had already started weakening after a crowded spring. The key exercise is to read liquidation zones as impulse risk, not as guaranteed direction.

0/2 completedDecision window: May 18, 2021Curated fallback
Liquidation cascade replayFuture hidden
Snapshot read
Exhaustion
Market phase
Bull-market deleveraging after crowded upside
Price context
Price was failing to reclaim prior highs while leverage was still exposed.
Primary signal
Liquidation pressure was building around forced-exit zones.
Supporting clues
Funding had been expensive before the flush
OI gave the move mechanical fuel
The danger was impulse speed, not only direction
Decision quiz
What does a large liquidation zone mean when funding and OI were already crowded?
Choose an answer to reveal the future candles and the CounterFlow read.
1/2 historical cases