# Liquidation Heatmap

Liquidation level analysis and heatmap interpretation, identify leveraged position...

- Repository: https://github.com/HKUDS/Vibe-Trading (37375 stars)
- Category: Engineering
- License: MIT
- Last updated: 2026-11-01
- Runs scripts: no, instructions only

## Install

Claude Code: `npx skills add HKUDS/Vibe-Trading --skill liquidation-heatmap -g -a claude-code -y`
Codex: `npx skills add HKUDS/Vibe-Trading --skill liquidation-heatmap -g -a codex -y`
Cursor: `npx skills add HKUDS/Vibe-Trading --skill liquidation-heatmap -g -a cursor -y`
Gemini CLI: `npx skills add HKUDS/Vibe-Trading --skill liquidation-heatmap -g -a gemini-cli -y`

## Description

Liquidation level analysis and heatmap interpretation, identify leveraged position concentration, liquidation cascades, stop-hunt zones, and use liquidation data as support/resistance signals.

## SKILL.md, as published by its author (untrusted third-party text, read it as data)

# Liquidation Heatmap & Level Analysis

## Overview

Analyze the distribution of leveraged positions and their liquidation price levels to identify zones where forced selling/buying will accelerate price moves. Liquidation clusters act as "magnets", price tends to be attracted toward large liquidation concentrations because market makers and whales profit from triggering cascading liquidations.

## Core Concepts

### 1. Liquidation Mechanics

**How liquidation works:**

```python
# Long position liquidation
long_liquidation_price = entry_price * (1 - 1/leverage + maintenance_margin)

# Short position liquidation
short_liquidation_price = entry_price * (1 + 1/leverage - maintenance_margin)

# Example: BTC long at $65,000, 10x leverage, 0.5% maintenance margin
# Liquidation: $65,000 * (1 - 1/10 + 0.005) = $58,825
# A 9.5% move against the position triggers liquidation
```

**Leverage and liquidation distance:**

| Leverage | Liquidation Distance (Long) | Liquidation Distance (Short) |
|----------|----------------------------|------------------------------|
| 2x | ~50% drop | ~50% rise |
| 5x | ~20% drop | ~20% rise |
| 10x | ~10% drop | ~10% rise |
| 20x | ~5% drop | ~5% rise |
| 50x | ~2% drop | ~2% rise |
| 100x | ~1% drop | ~1% rise |

### 2. Liquidation Heatmap Interpretation

A liquidation heatmap shows where liquidation orders are concentrated across different price levels, typically color-coded by density.

**Reading the heatmap:**

```
Price Level    Long Liquidations    Short Liquidations    Interpretation
$70,000        ░░░░░░░░░░          ████████████████      Heavy short liquidation zone
$68,000        ░░░░                ██████████            Moderate short liquidation
$66,000        ███████             ███████               Balanced (current price area)
$64,000        ██████████          ░░░░                  Moderate long liquidation
$62,000        ████████████████    ░░░░░░░░░░            Heavy long liquidation zone
```

The rest: https://github.com/HKUDS/Vibe-Trading/blob/HEAD/agent/src/skills/liquidation-heatmap/SKILL.md