Multi-Exchange Liquidation Map [Composite]

Multi-Exchange Liquidation Heatmap [Composite]
Institutional-Grade Liquidity Mapping (Pine Script v6)

🔵 Overview

The Multi-Exchange Liquidation Heatmap is a sophisticated visualization tool designed to reveal "Price Magnets" and "Max Pain" levels where high-leverage traders are forcibly liquidated. Unlike traditional volume profiles that only show past trades, this indicator projects future risk zones based on exchange margin-call mathematics.

By aggregating real-time data from Binance, Bybit, BitMEX, Coinbase, and Bitfinex, it provides a "composite" view of the market. This allows you to spot liquidity clusters that are invisible if you only monitor a single exchange.

⚙️ How It Works: The Logic

The script operates on a deterministic mathematical model rather than a heuristic/estimated one:

1. Pivot Detection: It identifies significant Swing Highs and Swing Lows (Pivots) across all enabled exchanges.
2. Margin Mathematics: For every pivot, it calculates exact liquidation prices for 100x, 50x, and 25x leverage tiers using the standard exchange formulas:
   *
   

   Long Liquidation: Pliq​=Pentry​×(1−L1​)
   Short Liquidation: Pliq​=Pentry​×(1+L1​)

   
   *
   
3. Composite Aggregation: Because a "wick" might be deeper on Bybit than on Binance, the script marks both levels. This creates a more accurate and denser "Liquidity Wall."
   
   
4. Heatmap Visuals (Alpha Blending): Each zone is drawn with 95% transparency. When levels from different exchanges or different leverage tiers overlap at the same price, the color intensifies (darkens). These "hot zones" represent high-probability reversal or acceleration points.
   
   
5. Dynamic Sweeping: To keep your chart clean, the script automatically deletes a box once the market price "sweeps" through it. This ensures you only see untaken liquidity.

🛠️ How to Setup & Configure

1. Multi-Exchange Input

In the settings, you can toggle specific data feeds:

1. * Binance & Bybit: Pre-configured for Perpetual contracts (e.g., BINANCE:BTCUSDTPERP).
   
   * BitMEX: Captures "Starved Whales" and older market participants.
   
   * Coinbase (Spot): While Spot has no liquidations, traders use Coinbase Swing points for Stop-Losses. Zoned at 25x to represent "Hedging Support."
   
   * Custom / Hyperliquid Proxy: Since Hyperliquid isn't native to TV yet, use this field to input a custom ticker (e.g., OKX:BTCUSDTPERP or BYBIT:HYPEUSDT.P).
   

2. Filtering & Sensitivity

1. Volume Filter Multiplier: Only pivots with a volume spike (e.g., 1.5x the 50-SMA) generate zones. This filters out retail "noise" and focuses on institutional entries.
   
2. Pivot Lookback: Set how many candles are required to confirm a swing. A value of 5 is ideal for intraday trading.
   

📈 Trading Strategy: Liquidations vs. Volatility

How to Trade:

1. The Magnet Effect: Price is attracted to dense "Heatmap" clusters. Use these zones as Take-Profit targets.
   
2. The Exhaustion Signal: When price slams into a 50x or 100x liquidation zone and then pulls back, it is a high-confidence signal that the "fuel" for the move has been exhausted.
   
3. The Cascade: If 100x liquidations trigger a move into 50x levels, expect a rapid "cascade" or "flash wick."
   

⚠️ Technical Performance

This script is built on Pine Script v6, utilizing User-Defined Types (UDT) and Matrix-based Garbage Collection for maximum efficiency.

1. Request Limit: TradingView limits scripts to 40 request.security calls. This script uses approximately 10-15 calls, leaving you plenty of headroom for other indicators.
   
2. Resolution: For the best results, use the 5m, 15m, or 1h timeframes.
   

Disclaimer: Liquidation levels are theoretical proxies based on common leverage settings. This tool should be used as confluence for price action and market structure analysis.