The cTrader Liquidation Heatmap Indicator is an experimental visualisation tool that displays potential liquidity and liquidation zones directly on the trading chart. It helps traders identify areas where stop clusters, trapped orders, or high trading interest may exist — often preceding price reactions or reversals.
This indicator divides price levels into evenly spaced “buckets” above and below the current price, colouring each according to the selected statistical model. It supports both Gaussian and Uniform distribution options, where the Gaussian model highlights zones with higher liquidity concentration near current price.
An ATR-based volatility adjustment ensures that the bucket size adapts dynamically to changing market conditions. Traders can also adjust the lookback period (from 12 hours to 1 month), customise colour gradients and opacity, and enable optional numerical labels for detailed analysis.
Main Features:
How to Use:
Brightly coloured or intense heatmap areas often represent potential high-liquidity zones. When price approaches these areas, traders can monitor for reversals, breakouts, or liquidity sweeps. Combining this indicator with tools such as RSI, ATR, or Volume Profile can improve accuracy and confirmation of reactions within these zones.
Category: Experimental Indicator (Liquidity Visualisation).
Learn more and download from ClickAlgo:
https://clickalgo.com/liquidation-heatmap
This indicator divides price levels into evenly spaced “buckets” above and below the current price, colouring each according to the selected statistical model. It supports both Gaussian and Uniform distribution options, where the Gaussian model highlights zones with higher liquidity concentration near current price.
An ATR-based volatility adjustment ensures that the bucket size adapts dynamically to changing market conditions. Traders can also adjust the lookback period (from 12 hours to 1 month), customise colour gradients and opacity, and enable optional numerical labels for detailed analysis.
Main Features:
- Gaussian or Uniform distribution models.
- ATR-based dynamic scaling for bucket sizing.
- Adjustable lookback period for liquidity mapping.
- Customisable colours and transparency levels.
- Visual identification of potential liquidation zones.
How to Use:
Brightly coloured or intense heatmap areas often represent potential high-liquidity zones. When price approaches these areas, traders can monitor for reversals, breakouts, or liquidity sweeps. Combining this indicator with tools such as RSI, ATR, or Volume Profile can improve accuracy and confirmation of reactions within these zones.
Category: Experimental Indicator (Liquidity Visualisation).
Learn more and download from ClickAlgo:
https://clickalgo.com/liquidation-heatmap
