Smart Liquidation Clusters
- Indicators
- Version: 1.0
- Activations: 5
The Smart Liquidation Clusters is a custom technical indicator designed for the MetaTrader 4 (MT4) platform. It calculates and visualizes estimated liquidation zones based on price action and internal algorithms, displaying them as a dynamic heatmap on the chart. These zones are known by several names, sometimes referred to as liquidity pools, liquidity levels, leverage levels, liquidation heatmap levels, leverage heatmap zones, or leverage heatmap levels.
These zones represent potential areas of liquidity concentration, where stop-loss clusters or liquidation events may occur.
Please note: The levels shown are model-based estimations and do not represent actual or guaranteed liquidation data. They should be used as a information tool, not as a predictive or exact source of market events.
Usage: The user inputs a minimum and a maximum leverage level. Based on these values, the indicator calculates the liquidation zones for each leverage level within that range, including both endpoints.
For example, if a minimum leverage of 5 and a maximum of 10 are set, the indicator will calculate the liquidation zones for each level in that interval (5, 6, 7, 8, 9, and 10).
To perform the calculation, click the "CALC" button.
A common issue, for example on EURUSD 5m, is that zones may not appear. This can happen because the zones are too far from the current price. Keep in mind that higher leverage levels result in zones being closer to the price, while lower leverage levels place zones further away. Another case where zones may not appear, for example on EURUSD 1m, is due to the width of the zones. In this case, reducing the zone width can help — for example, changing the Price Clustering from 100 points to 5 points. This issue of zones not appearing can occur particularly on smaller timeframes such as 15m, 5m, and 1m. With the adjustments mentioned above, it should be possible to resolve it.
