Decoding the Chart: The Liquidation Trinity
This chart highlights three key metrics:
Red Bars (Short Liquidations):
Represent traders who bet on a price drop (shorts) and are forced to close their positions.
Green Bars (Long Liquidations):
Indicate traders expecting a price rise (longs) being liquidated.
Yellow Line (Price):
Tracks the assetâs price movement over time.
By analyzing these elements together, you can gain valuable insights into market dynamics and potential trends.
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