ποΈ Concept and Layers
The advanced indicator Grim Reaper (Liquidation Heatmap) by MethodAlgo is designed to predict potential price levels where large-scale liquidations might occur. This algorithm uses exchange big data information (Open Interest, O.I) and calculates potential liquidation price levels at different leverage levels over time. It aims to help traders find optimal high-liquidity trading positions. Grim Reaper estimates liquidation points based on five different leverage levels (5x, 10x, 25x, 50x, 100x), represented in different colors (from cool purple to hot yellow). Traders can identify high liquidity areas by observing the density and color of the lines.
ποΈ Strategies
Traders can compare different pairs to discover attraction preferences for liquidation lines at different leverage levels, considering market cap and liquidity volatility
ποΈ Parameter Settings
let's dive into the liquidation heatmap's parameters and settings.